Unilever, McCormick food deal may weaken UK competition, watchdog says

Impact · against what's priced in

The UK watchdog's concerns increase the risk that the Unilever-McCormick deal fails to close or requires divestitures, directly threatening the projected earnings accretion and synergies the market is currently ignoring. This creates a negative catalyst for both companies by increasing the probability that the deal's promised benefits will never materialize.

MKC−0.30

Challenges what's priced in

The price assumes

Whether the Unilever foods acquisition will actually close and deliver the promised earnings boost and margin expansion

The market is not yet paying for the deal's earnings accretion or $600 million in synergies; the regulator's intervention increases the likelihood that these benefits will not be realized.

What MKC's price assumes · Sep 23

• m and a
• MKC
• UL
• antitrust
• competition
• consumer goods
• food industry
• uk
• unilever

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