McCormick's $65 Billion Unilever Foods Tie-Up Could Harm Competition, U.K. Regulator Warns — Update

By Aimee Look

A tie-up between McCormick and Unilever's foods business could harm competition, the U.K.'s competition watchdog said, citing concerns about a deal poised to combine two major makers of dry ingredients and sauces.

The Competition and Markets Authority said the deal, which would create a new sauces-to-spices giant valued at more than $65 billion including debt, could harm competition in one or more markets in the U.K. It gave the companies one week--until Nov. 18--to offer commitments to address its concerns.

Central to the U.K. authority's probe is the close competition between McCormick and Unilever's dry cooking ingredient mixes and dry pour-over sauces, the watchdog said. The merger would blend the two biggest branded suppliers of these products--McCormick owns the Schwartz brand, and Unilever's foods business houses Knorr and Colman's.

In response, Unilever and McCormick said they are working constructively with the CMA to find a suitable remedy, and still expect a timely closing. The companies struck the deal in March and previously indicated they expected to close it in mid-2027.

Unilever added that it has already decided to put the Colman's brand up for sale to address competition concerns. Discussions with buyers for the Colman's brand are progressing well, it said.

Though there are other branded and private-label rivals that make dry ingredient mixes and dry sauces--namely Nestle's Maggi--these competitors pose only a limited constraint to the combined business's looming domination, the CMA said.

A Unilever and McCormick merger would make it difficult for competitors to enter or expand in dry ingredient mixes and dry sauces, the watchdog said. The merger gives rise to what the CMA deemed as a significant lessening in competition for the two categories, it added.

As both companies are prominent makers of condiments, mustard was the other point raised in the authority's review. McCormick supplies American-style mustard under the French's brand, and Unilever has the English and European styles through Colman's and Maille.

Evidence from large supermarkets indicated that consumers don't consider them as "suitable alternatives" to one another, so all types need to be stocked, the CMA said. As a result, there isn't any overlap between these products, and there will be no realistic prospect of competition concerns for mustard, it said.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

November 11, 2026 05:35 ET (10:35 GMT)