McCormick-Unilever $44.8B deal draws UK competition scrutiny

By Marcus Bennett

McCormick & Co.’s $44.8 billion merger with Unilever’s food business faces a Nov. 18 deadline to answer U.K. competition concerns. The Competition and Markets Authority (CMA) said an in-depth investigation could follow if the companies fail to address its findings.

What competition concerns did the CMA identify?

The CMA said the transaction would give “rise to a realistic prospect of a substantial lessening of competition” in the U.K. It opened the first phase of its investigation in September. Its review found that the combined company would be “by far” the largest supplier of dry mixes and sauces.

The regulator acknowledged competition from:

• Private-label products.
• Branded rivals, including Nestlé’s Maggi dry ingredient mixes.

But the CMA said that competition was insufficient to offset the merged company’s strong market position. In plain terms, the agency sees a concentration problem that existing alternatives do not resolve.

How are McCormick and Unilever responding?\n

Unilever said the decision “is an expected step in the regulatory process, and we are working constructively with the CMA on a suitable remedy.” The wording treats regulatory scrutiny as a known stage rather than an unexpected setback.

McCormick echoed Unilever’s comments in a separate statement. It added: “we continue to make good progress on regulatory approvals globally, reinforcing our confidence in a timely closing.” Neither company’s statement identifies a specific remedy, and the CMA has set Nov. 18 as the next hard deadline.

What could the Colman’s sale change?

In August, Unilever announced it was proactively looking to sell the Colman’s brand and assets, including dry mixes and sauces, to address potential competition concerns. The London-based company said: “Discussions with potential buyers are progressing well.”

The announcement named no buyer, price or completion date. Those omissions matter because the CMA’s concerns center on the same product categories that Colman’s sale could affect.

Why did mustard escape the concern?

The CMA also reviewed the new company’s mustard overlap in the U.K. It said: “The CMA found no realistic prospect of competition concerns in relation to mustard.”

The regulator’s product breakdown was:

• McCormick supplies American-style mustard under the French’s brand.
• Unilever supplies English-style mustard through Colman’s and owns French-style mustard brand Maille.

The CMA said these variations require supermarkets to carry each one, limiting competition between the mustards. The mustard finding narrows the CMA’s concern, which remains focused on dry mixes and sauces.

Can the deal still close by mid-2027?

McCormick announced in March that it would buy the majority of Unilever’s food business, including Hellmann’s mayonnaise and Knorr sauces. McCormick said the deal, expected to close by mid-2027, would significantly expand its international reach and create a global condiments and ingredients giant.

The immediate test comes Nov. 18, when the companies must answer the CMA’s concerns. Failure to do so would send the case for further investigation and put McCormick’s mid-2027 target at risk.