Unilever to Combine with Spicemaker McCormick

Unilever said on Tuesday it was in advanced talks to combine its food business with spice maker McCormick in a potential deal that would deliver roughly $15.7 billion in cash to the consumer goods giant while giving its shareholders majority control of the merged entity.

If completed, the transaction would be structured as a so-called Reverse Morris Trust, which offers tax benefits. Unilever would spin off the division and then merge it with the Cholula hot sauce owner. It is expected that Unilever shareholders would retain a 65% stake in the combined entity.

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