Unilever has confirmed it is in “advanced discussions” with US-based McCormick over a potential merger of its food business.

The deal would take Unilever’s stake in the new combined business to 65%, giving the UK group majority control of a food business valued at over $60bn (£45.4bn).

Unilever, which owns brands such as Marmite and Hellmann’s mayonnaise, revealed that “work remains ongoing” to agree and finalise a transaction, after revealing on 20 March that it had received an approach from McCormick.

The FTSE 100 company said it is even possible that an agreement could be concluded today, but added there can be “no certainty” that a transaction will be agreed.

Should a deal proceed, it would involve a combination of Unilever Foods – excluding parts of its foods portfolio such as its business in India – with McCormick, with an upfront cash component of approximately $15.7bn (£11.9bn) and the majority of the consideration in McCormick equity.

The transaction would be undertaken by a Reverse Morris Trust, which is intended to be tax-free for US federal income tax to Unilever and its shareholders.

Unilever’s share price rose by 4% this morning upon the speculation.

---