Unilever in the limelight in London, analysts say possible divestment of food division is 'strategic'

(Il Sole 24 Ore Radiocor) - Unilever is making its mark on the London Stock Exchange (FT-SE 100 ) and in Amsterdam (AEX ), after the US group McCormick & Company bid for its food brands (which include Knorr soups and Maille mustard). In detail, in a note, Unilever confirmed 'that it has received an offer for its Foods division and is in negotiations with McCormick & Company', owner of Ducros spices and Vahiné pastry ingredients. However, the company specified, 'there is no certainty that an agreement will be reached'. In fact, the UK group's board 'believes that the Foods division is an extremely attractive business, with a strong financial profile supported by market-leading brands in growing categories, and is confident in the future of this division as an integral part of Unilever'.

The announcement of the negotiation comes after the top management of the group - also known for Dove soaps and Axe deodorants - had said last month, at the presentation of its results, that it wanted to concentrate more on the "Beauty" segment, on the high-end segment, and on online trade. An intention much appreciated by investors - among them the activist fund Trian of the American billionaire Nelson Peltz - and in line with the reorganisation that led, last December, to the demerger of the ice-cream division (Magnum, Cornetto, Ben & Jerry's), under the name 'The Magnum Ice Cream Company'. An eventual sale of the food division to McCormick & Company would be a further step in the company's focus on core brands, which was initiated with the 2024 strategic plan.

It could therefore be "strategically valuable", according to Bernstein analysts. "The advantages of the scale of massive production of different product categories no longer outweigh the disadvantages of the complexity" that this process requires, the analysts explain. "That said, the timing of the discussions is something of a surprise," per Bernstein. About a month ago, Unilever CEO Fernando Fernandez had in fact stated that the group had no urgency to act on a food divestment. In addition, 'although there is a natural affinity between most of Unilever's and McCormick's food brands, and Unilever seems willing to sell, the conclusion of a deal will still depend on the price,' Aj Bell adds. Unilever's food division generated €12.9 billion in revenues in 2025, the experts point out, 'which implies a potential purchase price of between €20 billion and €40 billion'.