The U.K.’s competition regulator has opened an investigation into whether the proposed $44.8 billion merger between McCormick & Co. and Unilever’s food division would violate antitrust law.
The Competition and Markets Authority, which launched the probe on Wednesday, set a Nov. 11 deadline to issue its so-called Phase 1 decision. If the regulator has concerns, it could launch a more in-depth Phase 2 investigation.
Unilever and McCormick declined to comment on the investigation.
McCormick announced an agreement in March to buy the majority of Unilever’s food business, including Hellmann’s mayonnaise and Knorr sauces. The deal, expected to be completed by mid-2027, is set to significantly expand McCormick’s international reach and create a global condiments and ingredients giant.
In addition to its spice and flavorings business, McCormick owns its namesake mayonnaise, Cholula and Frank’s hot sauces, French’s mustard and Cattleman’s barbecue sauces.
Unilever has taken steps to try and avoid antitrust scrutiny over the deal and said in August it is trying to sell its Colman’s mustard brand “to address potential competition concerns from the planned combination.”
In a presentation last week at a Barclays conference, McCormick CEO Brendan Foley said the spice and flavorings giant is “making good progress on the transaction.”
