Unilever has announced a merger with McCormick, which creates a major global food business with brands including Knorr and Hellmann’s.

The FMCG giant is separating its food business and will solely operate across Beauty, Wellbeing, Personal Care and Home Care moving forward.

This move marks a significant step which will form a global flavour conglomerate which aims to enhance overall business growth.

The official separation comes after Unilever streamlined its portfolio of brands in an effort to focus on its high-performing brands.

As part of the deal, Unilever will receive £11.89bn in cash subject to closing adjustments which will offset separation and tax costs as well as support approximately £5.2bn in share buy-backs expected to operate between 2026 and 2029.

CEO of Unilever Fernando Fernandez said: “We are unlocking trapped value through a growth-led separation of Foods, creating a scaled, global flavour powerhouse.

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“By combining Unilever Foods’ iconic leading brands and global reach with McCormick’s exceptional portfolio, category expertise and capabilities, we are establishing a focused, high-quality business with significant top-line growth and value creation potential.

“This is a combination built on strong strategic and cultural alignment, providing exciting opportunities for our people and ensuring our Foods brands continue to thrive as part of a global flavour leader.”

The new business will be led by the McCormick CEO and CFO alongside senior management from Unilever Foods.

McCormick is set to retain its brand and global headquarters in Hunt Valley, Maryland, and plans to establish international headquarters in the Netherlands. The merger is expected to be completed by mid-2027 subject to McCormick shareholder approval.

At the end of the deal, Unilever shareholders will own a 55.1 per cent stake, McCormick shareholders will own 35 per cent, and Unilever will have a 9.9 per cent stake in the fully diluted company’s equity.