Unilever Considers Food Business Separation Amid Kraft Heinz Talks

Financial outlets present the talks as part of Unilever’s push to focus on faster-growing beauty and personal care brands while exiting slower food categories. They describe a Unilever–McCormick combination as a scale-building deal that could reshape the global condiments and sauces market and trigger further consolidation. Commentators expect tough negotiations over price, deal structure and potential antitrust conditions in the US and Europe.

• •Unilever is using the potential sale of its food business to accelerate a shift toward beauty and personal care.
• •A merger of Unilever’s food arm with McCormick would create a leading global player in condiments, sauces and seasonings.
• •Investors in both companies are watching for details on valuation and whether the deal is structured as a sale, spin-off or merger.
• •Competition regulators in the US and European Union are likely to examine overlaps in sauces, seasonings and condiments.
• •Past approaches from Kraft Heinz show Unilever has been open for years to reshaping its food portfolio.