Unilever in advanced talks to fold most Foods unit into McCormick

Unilever ( (GB:ULVR) ) has provided an update.

Unilever PLC said it is in advanced talks with U.S.-based McCormick & Company over a potential strategic transaction involving most of its Foods business. The move follows earlier market speculation and reflects Unilever’s ongoing portfolio management in its global consumer goods operations.

The contemplated deal would combine Unilever Foods, excluding parts of its portfolio such as its Indian business, with McCormick via a Reverse Morris Trust structure. Under current terms being discussed, Unilever would receive about $15.7 billion in upfront cash and a majority equity stake, leaving Unilever and its shareholders with around 65% of the combined company, which would materially reshape its Foods exposure and ownership profile if completed.

The most recent analyst rating on (GB:ULVR) stock is a Buy with a £5062.00 price target. To see the full list of analyst forecasts on Unilever stock, see the GB:ULVR Stock Forecast page.

Spark’s Take on ULVR Stock

According to Spark, TipRanks’ AI Analyst, ULVR is a Outperform.

The score is driven mainly by steady profitability and reliable free cash flow, tempered by higher leverage. Technicals are supportive (price above key averages, positive MACD) but appear overextended on RSI/Stoch. Valuation is somewhat demanding at ~22.7x earnings, while the ~3.44% dividend yield and earnings-call outlook (cautious growth guidance plus buyback and cash generation) provide support.

To see Spark’s full report on ULVR stock, click here.

More about Unilever

Unilever PLC is a global consumer goods company with a significant presence in the food, home care and personal care sectors. Its Foods business includes a broad portfolio of branded products sold worldwide, with notable exposure to emerging markets such as India, although certain regional operations may be treated differently in strategic transactions.

Average Trading Volume: 4,205,947

Technical Sentiment Signal: Buy

Current Market Cap: £97.89B

Learn more about ULVR stock on TipRanks’ Stock Analysis page.