Barclays backs Unilever's complex Foods sale to McCormick, sees long-term value despite initial share drops.

Barclays supports Unilever's decision to sell its Foods division to McCormick, despite investor frustration and share price drops of 8-9% since the deal announcement. The transaction, structured as a Reverse Morris Trust, avoids US capital gains tax, saving Unilever up to €2 billion. Unilever shareholders will receive McCormick shares, becoming majority owners of the combined company, while Unilever refocuses on its growing home and personal care business. Barclays rates Unilever overweight with a 32% upside potential, viewing the current share price discount as unjustified given Unilever's strong recent performance.