Unilever says nears deal to merge Foods unit with McCormick

Core Viewpoint - Unilever is in advanced discussions to merge its foods business with McCormick, involving an upfront cash component of approximately $15.7 billion, with the majority of the consideration being in McCormick equity [1][2]. Group 1 - The transaction is expected to be structured as a Reverse Morris Trust, which provides tax benefits [2]. - Unilever plans to spin off its foods division and merge it with McCormick, the owner of Cholula hot sauce [2]. - Unilever shareholders are anticipated to retain a 65% stake in the newly combined entity [2]. Group 2 - Unilever stated that work is ongoing to finalize the transaction, with the possibility of an agreement being concluded soon, although certainty cannot be guaranteed [3].