CMA Sees Competition Risks in McCormick-Unilever Deal, Gives Companies Until Nov. 18
Key Facts
Britain’s Competition and Markets Authority (CMA) concluded that McCormick’s acquisition of most of Unilever’s global foods business could substantially reduce competition in the supply of dry ingredient mixes and dry sauces to UK retailers. The authority gave the companies until November 18, 2026, to offer commitments addressing those concerns before deciding whether to refer the deal for an in-depth Phase 2 investigation. The CMA said the deal “creates a realistic prospect of a substantial lessening of competition” in both categories. The decision does not block the deal, as commitments accepted by the authority could avoid a referral to the next stage. The approaching deadline puts the form of a regulatory remedy at the center of the deal’s UK review.
The authority’s concerns focus on supplier concentration in two specific categories, not the food sector as a whole. According to the Phase 1 decision summary, the deal would bring together the two largest branded suppliers of dry ingredient mixes and dry sauces, making the combined company by far the largest supplier in each. The CMA believes that combination could weaken competition to supply UK retailers. Among competing products cited by the authority were Maggi in dry ingredient mixes and Bisto in dry sauces, but it said they exert only a limited competitive constraint on the parties. The assessment therefore hinges on the ability of other brands to compete with the merged suppliers in those two markets.
McCormick sells dry ingredient mixes and sauces in Britain under the Schwartz brand, as well as spices and sauces under brands including French’s. Unilever sells food products in the UK market under brands including Knorr, Maille and Colman’s. The CMA said it is difficult for new suppliers to enter or expand in dry ingredient mixes and dry sauces because of limited shelf space in stores and the entrenched position of existing suppliers. In the authority’s view, that means new entry does not provide a sufficient constraint on incumbents in the two categories. The CMA links the existing suppliers’ broad reach to the difficulty of competing for display space in stores.
By contrast, the CMA found no competition concerns over mustard. It concluded that English, French and American styles of mustard form separate product markets, and that the parties’ products do not overlap in those markets. This finding narrows the scope of the concerns relative to the full portfolio of food brands involved. Unilever had said it had decided to sell the Colman’s brand to address potential competition concerns and that talks with potential buyers were progressing. Reuters reported in an analysis that the authority’s lack of concerns over mustard could change the likelihood of a sale, while an analyst cited by the news agency said UK Schwartz products could be part of a potential remedies package.
The deal involves McCormick acquiring most of Unilever’s global foods business, while Unilever retains some food operations. Under its structure, Unilever will receive shares in McCormick and the right to appoint members to its board. When the deal was announced, the companies said the consideration included $15.7 billion in cash, alongside shares representing 65.0% of the combined company’s outstanding equity on a fully diluted basis, and valued Unilever Foods’ enterprise value at about $44.8 billion. They also estimated combined revenue at about $20 billion based on fiscal 2025 revenue. The companies are targeting net annual cost savings of $600 million by the third year after completion.
The CMA began inviting comments from the parties on the deal on July 21, 2026, then announced the launch of its merger inquiry on September 16. The deal cleared a US regulatory hurdle on October 5, when it received approval under the Hart-Scott-Rodino Act, Reuters reported. A Unilever spokeswoman called this “an expected step in the regulatory process” and said the company was working with the authority on an appropriate remedy; McCormick also said it was working constructively with the CMA. The companies say they expect to complete the deal by mid-2027, subject to McCormick shareholder approval, regulatory approvals and customary closing conditions. This follows Unilever shares closing at 66.47 and McCormick shares at 46.72 on November 10, 2026, according to EL7 data, with no currency specified in the record.