Unilever holds talks to merge food business with US rival McCormick

Marmite and Hellmann’s mayonnaise firm Unilever has said it is in talks over a potential deal to merge its food business with rival firm McCormick.

It came after the Wall Street Journal reported that Unilever could spin off its foods business to combine it with the Schwartz spices and French’s mustard maker.

In an update to investors, Unilever said it “confirms that it has received an inbound offer for its foods business and is in discussions with McCormick & Company”.

It added: “There can be no certainty that any transaction will be agreed.”

Bosses nevertheless stressed that the division is “a highly attractive business, with a strong financial profile led by market-leading brands”.

It also said that it is “confident in the future of the Foods business as part of Unilever”.

McCormick has been contacted for comment.

It follows reports earlier this week that Unilever was looking at potentially demerging the food division – which also makes Colman’s mustard and Knorr – to focus on its beauty, personal care and home operations.

Last year, the group spun off its ice cream business to create the Magnum Ice Cream Company, which it floated with a primary listing in Amsterdam and secondary listings in New York and the UK.

It has also sold off a number of food brands, including snacking business Graze and plant-based brand The Vegetarian Butcher, in recent years.

Unilever has however sought to grow its personal care business over the past year with deals to acquire the fast-growing Wild and Dr Squatch brands.