UK watchdog demands competition remedies in $65 billion Unilever-McCormick food deal
The CMA said the merger could create the UK’s biggest supplier of dry ingredient mixes and gave the companies until Nov. 18 to offer remedies.
- Britain's Competition and Markets Authority warned today that Unilever's £33.8 billion merger with McCormick could weaken competition in the UK food market. The regulator threatened an in-depth investigation unless both companies offer remedies by Nov 18.
- Announced in March, the deal would merge Unilever's food division—including Knorr, Maille, and Colman—with McCormick brands like Schwartz and French. The CMA found the tie-up would create the "by far" largest supplier of dry ingredient and sauce mixes in Britain.
- While evaluating the merger, the regulator identified competitors such as Maggi and Bisto but concluded these brands "impose only a limited constraint" on the merged food group. This assessment focused on dry meal ingredients in Britain.
- Regarding mustard products, the regulator found "no realistic prospect" of competition concerns between Unilever and McCormick. Consumers view English, French, and American mustard styles as distinct types, limiting product overlap between the two companies.
- If the companies fail to address competition concerns by Nov 18, The CMA will refer the deal to a formal, in-depth investigation. This follows the initial review of the second-largest food deal in history.
9 Articles
9 Articles
UK watchdog demands competition remedies in $65 billion Unilever-McCormick food deal
Britain's competition watchdog told food giant Unilever and US spice maker McCormick they must address competition concerns in dry ingredients and mixed sauces or face an in-depth investigation of their planned $65 billion food deal.
Evening Standard
Unilever-McCormick deal may harm competition in dry ingredients market, says CMA
Unilever has brands like Knorr, Maille and Colman’s as part of its food division, while McCormick’s owns Schwartz and French’s in the UK.
Reformatorisch Dagblad
welingelichtekringen.nlThe British market watchdog is concerned about the proposed merger of Unilever's food division with American peer McCormick. The Competition and Markets Authority (CMA) is particularly worried that too little competition will remain in the market for sauce and spice mixes. Unilever has a well-known brand there with Knorr, while McCormick also sells many mixes.
LONDON (ANP) - The British market watchdog is concerned about the proposed merger of Unilever's food division with American peer McCormick. The Competition and Markets Authority (CMA) is particularly worried that too little competition will remain in the market for sauces and spices...
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