UK Competition Authority Launches Inquiry into Unilever-McCormick Deal
The UK's Competition and Markets Authority (CMA) has initiated a Phase I investigation into the $44.8 billion acquisition of Unilever’s food assets by McCormick & Co., assessing potential competition concerns in the market. The deal, announced earlier this year, includes brands like Knorr soups and Hellmann's mayonnaise but excludes Lipton drinks as well as operations in India, Nepal, and Portugal. Unilever has already taken steps to address regulatory concerns by seeking a buyer for Colman’s mustard brand last month. The CMA invited public comments on the deal between 21 July and 5 August before launching its initial probe with results expected by 11 November. If necessary, this could lead to a more detailed Phase II investigation. The transaction will result in Unilever shareholders owning 55.1% of the combined company, while McCormick shareholders hold 35%. The deal also includes $15.7 billion in cash for Unilever and is expected to be led by McCormick’s current CEO Brendan Foley.
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Topics: consumer goods M&A regulation