The UK competition regulator has today launched an investigation into the $65 billion merger between Unilever’s foods business and US spice maker McCormick to assess whether the deal could reduce competition in the UK.
If the deal goes through, it would create one of the world’s largest flavourings and food products companies, combining household brands such as Knorr, Hellmann’s, French’s and Frank’s RedHot as food manufacturers seek scale to offset rising costs and changing consumer demand.
The deal, announced in March, will leave Unilever and its shareholders owning 65% of the fully diluted equity of the combined company, including a 9.9% stake to be held directly by Unilever, while McCormick shareholders will own the remaining 35%.
The Competition and Markets Authority has set a November 11 deadline for its Phase 1 decision.
McCormick and Unilever did not immediately respond to Reuters requests for comment.
