Unilever nears deal to merge its foods arm with McCormick in a $15.7B reverse Morris trust deal

Unilever is in advanced talks to spin off most of its foods division and merge it with US spice company McCormick & Co. The deal could be agreed soon and involves an upfront cash payment of about $15.7 billion, mostly paid in McCormick shares, giving Unilever shareholders around 65% ownership of the new combined business. The merger would use a tax-efficient reverse Morris trust structure. This move would shift Unilever’s focus more towards higher-growth beauty and personal care sectors, but analysts warn it could lead to further restructuring due to reduced scale and costs, especially in emerging markets.