US food giant McCormick targets 76.55% stake in Unilever Pakistan Foods

US-based food company McCormick & Company has announced its intention to acquire at least 76.55% of Unilever Pakistan Foods Limited, seeking control of the Pakistani business as part of a broader global transaction involving Unilever’s food operations.

The proposed acquisition covers 4,876,294 shares and remains subject to regulatory approvals, including clearance from the Competition Commission of Pakistan (CCP).

According to a public announcement of intention submitted to the Pakistan Stock Exchange (PSX) on October 21, McCormick plans to acquire the shares directly or indirectly through one or more of its affiliates. Arif Habib Limited has been appointed manager to the offer.

Acquisition forms part of global food business deal

The proposed transaction is linked to an agreement between McCormick and Unilever PLC, dated March 31, 2026, under which McCormick intends to acquire sole control of substantially all of Unilever’s global food business, subject to agreed exclusions.

Unilever Pakistan Foods is the Pakistani entity included in the broader transaction.

Conopco, Inc., the existing majority shareholder of Unilever Pakistan Foods, holds 4,876,294 shares, representing 76.55% of the company’s issued share capital.

The announcement states that the number of shares to be acquired through a subsequent public offer has not yet been determined. The acquisition price and total financial consideration for the Pakistani transaction have also not been disclosed.

The proposed acquisition may be withdrawn if the required regulatory approvals are not obtained.

Unilever Pakistan Foods reports higher sales but lower profit

Unilever Pakistan Foods reported net sales of PKR 40.57 billion in 2025, compared with PKR 33.71 billion in 2024.

However, its profit after tax declined to PKR 5.95 billion from PKR 6.98 billion during the same period.

Earnings per share fell to PKR 933.50 in 2025 from PKR 1,094.93 a year earlier, while the dividend per share decreased to PKR 1,651 from PKR 1,877.

For the first half of 2026, the company reported net sales of PKR 25.26 billion and profit after tax of PKR 4.34 billion.

The company had 6,369,950 issued ordinary shares, each with a face value of PKR 10. Its share price stood at PKR 25,352 on the trading day preceding the announcement, while its weighted average share price over the 28-day period ending October 20 was PKR 25,308.

Who is McCormick?

Founded in 1889 and headquartered in Maryland, United States, McCormick manufactures and distributes spices, herbs, seasonings, sauces, condiments and other flavour-related products across approximately 150 countries and territories.

Its portfolio includes brands such as McCormick, French’s, Frank’s RedHot and OLD BAY.

The broader global transaction is expected to bring together McCormick’s portfolio with Unilever food brands, including Knorr and Hellmann’s, creating a combined food business with approximately USD 20 billion in annual revenue based on fiscal year 2025 figures.

The global transaction is expected to close by mid-2027, subject to shareholder approval, regulatory clearances and other customary closing conditions. The Pakistani acquisition remains subject to the applicable regulatory process.