McCormick’s merger with the Unilever food division is under scrutiny from the Competition & Markets Authority as the regulator officially opened an investigation into the megadeal.
The phase 1 probe, launched today (16 September), follows a call for comment in July from the CMA to any interested industry parties on the $45bn combination.
The watchdog will now consider whether the deal will result in the lessening of competition in the relevant UK categories.
It will decide by 11 November on whether to clear the merger or refer it to a more in-depth phase 2 review.
McCormick announced it had reached an agreement to acquire the €11bn Unilever food division in March, creating a “global flavour powerhouse”. Once completed, the deal will bring together Unilever food brands such as Hellmann’s and Knorr with the likes of French’s and Frank’s RedHot.
Last month, Unilever confirmed it had appointed bankers at Rothschild to seek a buyer for its historic Colman’s mustard brand as part of efforts to allay any UK competition fears.
“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,” Unilever said at the time.
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