# Unilever nearing deal worth £11.9bn to merge food unit with US rival McCormick

By Russ Mould — 2026-03-31

Russ Mould, investment director at AJ Bell, said: “The market could be about to make its own version of Marie Rose sauce as a combination between Unilever’s food business, which encompasses Hellman’s mayonnaise, and McCormick, owner of French’s Ketchup, moves closer to fruition.

“The presence of activist investor Nelson Peltz on the shareholder register since 2022 has led to consistent pressure on Unilever’s management to streamline the business.

“Having shed its ice cream division last year, this demerger of its food business is the first big strategic move under CEO Fernando Fernandez since he took the top job a year ago.

“While Unilever’s food operations generate strong margins, growth has lagged behind its personal care and beauty brands.

“Competition from unbranded alternatives hasn’t helped and, in a GLP-1 world, people’s literal appetite for less healthy packaged food is being suppressed.

“Having slimmed down, Unilever will want to show it is fighting fit for the future and it will get its next opportunity to do so with next month’s first-quarter update.”

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