The UK’s Competition and Markets Authority (CMA) has raised competition concerns over the proposed $65 billion combination of Unilever’s food business with US-based spice and sauce maker McCormick. The regulator has given both companies until November 18, 2026, to offer remedies that address its concerns or face an in-depth Phase 2 investigation. The decision could delay one of the largest food industry transactions in recent years.
The CMA is particularly concerned about the combined company’s position in the UK market for dry cooking ingredient mixes and dry sauces sold to retailers. The transaction would bring together two major branded suppliers, McCormick’s Schwartz and Unilever’s Knorr, potentially reducing the competitive choices available to supermarkets. Both companies have said they are working constructively with the regulator to find an acceptable solution. <Cite refs={[“turn625728news6″,”turn625728search0″,”turn625728search5”]}/>
Why Has the UK Competition Watchdog Intervened?
The CMA’s initial review found that the proposed transaction could substantially weaken competition in two product categories:
- Dry cooking ingredient mixes: Products such as chilli con carne seasoning mixes and other packaged cooking ingredients.
- Dry pour-over sauces: Products such as parsley sauce and other powdered or packaged sauces prepared by consumers.
The regulator found that McCormick and Unilever are two of the largest branded suppliers in these categories in the UK.
McCormick sells products under its Schwartz brand, while Unilever’s food business markets products under Knorr and other food brands.
Combining these businesses could give the enlarged company a particularly strong position in the supply of these products to supermarkets.
The CMA also examined whether other manufacturers and supermarket-owned brands would provide sufficient competitive pressure. It concluded that alternatives such as Nestlé’s Maggi, Premier Foods’ Bisto and private-label supermarket products might not adequately constrain the merged company.
The regulator is also concerned that limited shelf space in supermarkets and the established position of existing brands could make it difficult for smaller competitors to expand or for new companies to enter the market. <Cite refs={[“turn625728search2″,”turn625728search3”]}/>
November 18 Deadline: What Must Unilever and McCormick Do?
The CMA has given the companies until November 18 to propose commitments that address its competition concerns.
These commitments are formally known as undertakings in lieu of reference, or UILs. They allow companies to offer remedies to resolve competition concerns before a transaction is sent for a full Phase 2 investigation.
Potential remedies in merger cases can include selling particular brands, businesses or assets to another buyer. The objective is to preserve meaningful competition after the transaction.
If the companies offer a remedy that the CMA considers acceptable, the regulator can avoid referring the deal for a more detailed investigation.
However, if no suitable proposal is submitted, or the regulator rejects the proposed commitments, the transaction will be referred for a Phase 2 investigation.
That process would involve a more extensive assessment of the potential impact on competition and could result in approval, approval subject to further remedies or prohibition of the transaction.
The November 18 deadline is therefore an important milestone for both companies. <Cite refs={[“turn625728search0″,”turn625728search4”]}/>
Why the Colman’s Brand Has Become Part of the Discussion
One of the most notable aspects of the CMA’s decision is its treatment of Colman’s, the well-known British mustard brand owned by Unilever.
Unilever and McCormick had already indicated in August that they were seeking a buyer for Colman’s and its associated assets to address potential competition concerns ahead of the merger.
However, the CMA’s initial review found no realistic prospect of competition concerns in the mustard market.
The reason is that the regulator considers different styles of mustard to operate in separate product markets.
- Colman’s: Primarily associated with English-style mustard.
- Maille: Unilever’s French-style mustard brand.
- French’s: McCormick’s American-style mustard brand.
Evidence gathered from major supermarkets indicated that shoppers generally do not consider these different mustard styles to be direct substitutes.
Supermarkets may need to stock several types to meet different consumer preferences. Consequently, the CMA found no meaningful competitive overlap between the companies in this category.
This means that selling Colman’s may not directly resolve the concerns identified in dry ingredient mixes and dry sauces.
The regulator’s focus is instead on the products where the two companies compete more closely. <Cite refs={[“turn625728search2″,”turn625728search3″,”turn625728search5”]}/>
What Is the $65 Billion Unilever-McCormick Deal?
Unilever announced the proposed combination in March 2026 as part of a wider strategy to reshape its business portfolio.
The transaction involves combining the majority of Unilever’s food business with McCormick’s existing food and flavouring operations.
The resulting business is expected to have an enterprise value of approximately $65 billion, including debt.
The combination would bring together several well-known international food brands.
| Company | Major brands involved |
|---|---|
| Unilever Foods | Knorr, Hellmann’s, Maille and Colman’s |
| McCormick | Schwartz, French’s and Frank’s RedHot |
The combined company would operate across seasonings, spices, condiments, sauces and packaged cooking products.
The transaction is expected to create a major global food business with a broad portfolio of consumer brands and international distribution networks.
Under the proposed ownership structure reported when the deal was announced, Unilever shareholders are expected to own 55.1% of the enlarged company, McCormick shareholders 35%, and Unilever itself 9.9%.
McCormick CEO Brendan Foley is expected to lead the combined business, with Marcos Gabriel serving as chief financial officer.
The companies have targeted completion around mid-2027, subject to regulatory approvals and other closing conditions. <Cite refs={[“turn625728search2″,”turn625728news8”]}/>
Why Is Unilever Separating Its Food Business?
The proposed transaction is part of Unilever’s effort to simplify its business and concentrate more heavily on categories such as beauty, personal care and home care.
Food has historically been a major part of Unilever’s portfolio, with brands including Knorr and Hellmann’s operating across international markets.
However, the company has been reassessing its portfolio to focus on businesses it believes offer stronger long-term growth opportunities and strategic advantages.
Combining its food operations with McCormick would allow the food brands to operate within a company focused more directly on seasonings, sauces and flavour-related products.
For McCormick, the transaction would significantly expand its global portfolio, adding established brands and distribution capabilities in several food categories.
The deal therefore represents a major strategic shift for both companies: Unilever would reduce its exposure to food, while McCormick would become a substantially larger player in the global packaged food market.
What Happens If the CMA Rejects the Proposed Remedies?
If Unilever and McCormick cannot satisfy the regulator by November 18, the transaction will move towards a full Phase 2 investigation.
A Phase 2 review is more detailed than the initial assessment. It allows the regulator to examine market conditions, competitive alternatives, customer behaviour and the likely impact of the proposed merger.
The CMA could ultimately reach several possible outcomes:
- Unconditional approval: The regulator concludes that the transaction does not create an unacceptable competition problem.
- Conditional approval: The companies must sell assets or accept other remedies to address competition concerns.
- Prohibition: The regulator blocks the transaction if it concludes that the competition problems cannot be resolved adequately.
A prolonged review could affect the companies’ planned completion timeline and create uncertainty around the future ownership of their food brands.
The companies have said they are engaging constructively with the CMA and remain focused on completing the transaction. <Cite refs={[“turn625728news6″,”turn625728search0″,”turn625728news8”]}/>
The Bigger Picture
The regulatory challenge highlights how large food industry mergers can attract scrutiny even when the companies operate across multiple product categories and international markets. Competition authorities often examine individual product markets rather than treating an entire food portfolio as one business. In this case, the CMA’s concerns are concentrated on dry ingredient mixes and dry sauces, where the combination could reduce the number of meaningful branded suppliers available to UK retailers.
For Unilever, the deal is an important part of its portfolio restructuring. For McCormick, it offers an opportunity to expand its global presence and strengthen its position in sauces, spices and seasonings. However, the companies must now address the regulator’s concerns without undermining the commercial rationale of the transaction. The outcome could also influence how other major consumer goods companies approach acquisitions and divestments in markets with established brands.
Looking Ahead
The immediate focus is on the November 18 deadline, when Unilever and McCormick must submit proposed remedies to the CMA. The regulator’s findings suggest that any solution will need to address the competitive overlap in dry cooking ingredient mixes and dry sauces rather than relying solely on the planned sale of Colman’s. If the companies cannot offer an acceptable commitment, a full Phase 2 investigation could add further time and uncertainty to the transaction.
The longer-term outcome will determine whether McCormick can complete one of the biggest expansions in its history and whether Unilever can proceed with its plan to reshape its business around other consumer categories. Even if the transaction receives regulatory approval, any required asset sales could change the final structure of the combined company. Investors, retailers and competitors will be watching closely as the review progresses.
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