Unilever Nigeria Plc says its parent company, Unilever Plc, is set to merge its global foods business with US-based McCormick & Company in a deal valued at $44.8 billion.
The company disclosed this in a statement to the Nigerian Exchange (NGX), noting that it is currently assessing how the transaction will impact its local operations and corporate structure.
According to the statement signed by company secretary Peter Dada, the agreement between Unilever Plc and McCormick is subject to regulatory approvals and other customary closing conditions.
The planned merger is expected to create a new global group focused on flavours, seasonings and packaged food products.
Unilever Nigeria said it will provide further updates to shareholders once it receives more details from its parent company regarding the transition timeline and operational adjustments.
The company explained that the foods segment remains a key revenue driver for both the global group and its Nigerian subsidiary, making the transaction potentially significant for earnings performance.
Unilever Plc currently operates across four major segments, including beauty and wellbeing, personal care, home care and foods, with the foods division contributing a substantial share of global revenue.
Under the proposed arrangement, the transaction will involve a mix of shares and cash, with Unilever shareholders expected to receive a majority stake in the combined entity alongside a cash component.
The deal will be structured under a tax-efficient “Reverse Morris Trust” arrangement and is expected to be completed by mid-2027, subject to approvals from regulators and McCormick shareholders.
Unilever Plc says it will gradually divest its stake in the combined company after completion, in line with its long-term strategic and financial plans.
The company maintains that the merger reflects a strategic repositioning of its global foods business to strengthen competitiveness in the global flavours and packaged foods market.
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