MKC Shares Edge Up After Hours On Reports Of Merger Talks With Unilever

• The talks between Unilever and McCormick could still fall apart, the report added. 
• The report comes on the heels of an earlier report from Bloomberg this week, which said that Unilever is in the early stages of considering a separation of its food assets.
• Earlier this week, the Financial Times reported Unilever and Kraft Heinz discussed merging Unilever’s food business and Kraft Heinz’s condiments division as well.

Shares of McCormick (MKC) edged up 2% after-hours on Thursday following reports that Unilever (UL) is in talks to merge its food business with the spice maker.

The Wall Street Journal reported on Thursday, citing people familiar with the matter, that an all-stock deal could come within weeks, although the exact structure of the deal couldn’t be learnt. The talks could still fall apart, the report added.

The report comes on the heels of an earlier report from Bloomberg this week which said that Unilever, the maker of Hellmann's mayonnaise, is in the early stages of considering a separation of its food assets as it looks for ways to further streamline its sprawling portfolio.

The Rationale

The Anglo-Dutch company is considering a potential separation of most or all of its food business, the report had said, as it seeks to focus on growth from its beauty, personal care, and wellbeing brands, which house products such as Dove soap and Axe deodorant.

People familiar with the matter also told Bloomberg that the company is in the preliminary stages of weighing possibilities though it may not pursue a deal before 2027.

Unilever spun off its ice cream division into Magnum Ice Cream Co (MICC). last year on the heels of selling its spreads and tea divisions. The company still owns Marmite and Knorr.

Earlier this week, the Financial Times reported Unilever and Kraft Heinz discussed merging Unilever’s food business, and Kraft Heinz’s condiments division as well. The talks have now ended, the report said.

McCormick, based out of Maryland, owns brands including French’s yellow mustard, Old Bay seasoning, Frank's RedHot hot sauce, and Cholula hot sauce, among others.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MKC and UL stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume remained ‘normal’.

UL and MKC stock have fallen 7% and 34%, respectively, over the past 12 months.

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