Unilever has confirmed that it is seeking a buyer for its Colman’s mustard brand as it looks to address potential competition concerns surrounding the planned combination of its food business with McCormick.
The move comes as US food group McCormick prepares to acquire Unilever’s food operations in a $15.7 billion deal, which would bring together a portfolio including Hellmann’s, Knorr, Marmite and Pot Noodle.
McCormick already owns French’s, one of the world’s leading mustard brands.
A Unilever spokesperson told FoodBev: “A decision has been taken to market the Colman’s brand and assets to potential buyers in order to proactively seek to address potential competition concerns from the planned combination of Unilever Foods and McCormick. Discussions are ongoing and the operations continue as usual.”
Sky News reported that the sale process was initiated while competition regulators scrutinise the proposed transaction. The valuation of the Colman’s brand is currently unclear.
Under the deal, which is expected to close next year, Unilever shareholders will hold 65% of the combined company, with McCormick shareholders owning the remaining 35%.
According to Sky News, the planned McCormick transaction is expected to create a global food business valued at approximately $66 billion.
Source: foodbev.com
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