The Competition and Markets Authority (CMA) has opened the first stage of its review into McCormick & Company's proposed $44.8bn acquisition of Unilever's Foods business, inviting comments from interested parties as it assesses the deal's potential impact on competition in the UK.

As it stands, the transaction would combine brands including Knorr, Hellmann's, McCormick, French's and Frank's RedHot into a global food and flavourings business expected to generate around $20bn in annual revenue.

Unilever shareholders are set to receive a mix of cash and shares in the combined company, while Unilever is expected to retain a 9.9% stake following completion before selling it over time.

The CMA has not yet launched a formal Phase 1 merger investigation. Instead, it has issued an Invitation to Comment, with submissions due by 5 August, to gather initial views on whether the acquisition could reduce competition in areas such as condiments, seasonings, stock cubes, cooking aids and foodservice products.

After reviewing the responses and pre-notification materials, the regulator will decide whether to open a formal Phase 1 investigation. Given the size of the transaction and the concentration of leading food brands involved, the deal is widely expected to face detailed regulatory scrutiny, both in the UK and abroad.

Unilever is a constituent of the FTSE 100, headquartered in London and with a single UK-based legal structure since unifying its Anglo-Dutch corporate structure in 2020, while McCormick is headquartered in Maryland and listed on the New York Stock Exchange (NYSE).

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