CMA seeks remedies for $65bn Unilever–McCormick merger, deadline 18 November
UK watchdog asks the companies for solutions to competition risks and warns of a deeper probe if concerns are not resolved.
Britain’s competition watchdog has signalled fresh regulatory hurdles for the planned $65 billion merger between Unilever and McCormick, asking the companies to propose fixes for competition concerns on the UK market.
Competition and Markets Authority seeks remedies before deeper probe
The Competition and Markets Authority (CMA) told Unilever and McCormick that the transaction could substantially lessen competition in certain food and sauce segments, and requested proposals to remove the identified risks. The firms have until 18 November to submit remedies to the regulator.
If the companies cannot satisfy the CMA with acceptable measures, the case may move to a more detailed phase of investigation, which would lengthen the approval process for the tie-up.
The deal – put at around $65 billion – would see McCormick acquire a large portion of Unilever’s food business, including well‑known sauce and spice brands. For McCormick the acquisition represents a major expansion of its global footprint and strength in spices and food seasonings; for Unilever the divestment is part of its strategy to refocus its portfolio.
The CMA’s main worry is that combinations of the two companies’ overlapping portfolios could reduce consumer choice, weaken competitive pressure on prices and make it harder for smaller producers to compete. Regulators will assess whether proposed remedies sufficiently protect consumers and preserve effective competition on UK shelves.
Photo: press material from the event
