Unilever food merger: Markets and employees respond - summary
- Unilever plans to merge Foods division (excluding India) with McCormick
- Deal valued over forty billion dollars triggered sharp negative market reaction
- Unilever shares fell significantly after confirmation and have not recovered
- Employees across Europe raised concerns over consultation processes and job security
- Merger signals risks of major restructuring for big food multinationals
Last month brought the news that British multinational Unilever is to merge its Foods business (excluding India) with American sauce and spice giant McCormick & Company, Inc., in a deal worth over $40bn (€34bn).
But, while the announcement was positioned as a great opportunity for both companies, with CEOs Fernando Fernandez (Unilever) and Brendan Foley (McCormick) expressing their confidence in the new partnership, it’s proven less popular with financial markets and company employees.
Market reaction
The markets made their feelings on a potential Foods spin-off immediately clear, with Unilever’s shares sliding as rumours of the move started to circulate at the beginning of March. But it was when the deal was confirmed that shares really took a tumble, dropping £3.29 (€3.79) per share within 24 hours. Since then, confidence has remained low, and shows little sign of recovery.
It seems that despite reassurances from management, the wider business community is struggling to see the merits of the merger, questioning whether it delivers sufficient long-term value to justify the upheaval.
| Date | Share price in Great British Pence (GBX) |
|---|---|
| 3 March 2026 | 5,134.00 |
| 10 March 2026 (Foods spin-off rumours begin) | 4,907.00 |
| 17 March 2026 | 4,880.00 |
| 24 March 2026 | 4,528.00 |
| 31 March 2026 (Foods spin-off confirmed) | 4,199.00 |
| 7 April 2026 | 4,188.00 |
| 14 April 2026 | 4,250.00 |
| 21 March 2026 | 4,219.00 |
Employee reaction
Unilever’s employees, it seems, were similarly unhappy about the announcement, with Hermann Soggeberg, chairman of the Unilever European Works Council (UEWC), releasing the following statement.
“On 31 March, the UEWC was officially informed for the first time of Unilever’s intention to combine its Foods business with McCormick. At that point, the strategic decision had already been taken. From the UEWC’s perspective, employee representatives were not involved at an early stage. A genuine, open consultation – including the opportunity to develop and present alternatives before the decision was made – did not take place."
Soggeberg went on to say that “at present, there is no reliable information on the concrete impact on jobs, sites, organisation or working conditions” and that for employees, the merger “represents yet another significant disruption”.
Now, three weeks on, talks with management to secure long-term employment protections have taken place, with UEWC’s Soggeberg making the following statement to this publication.
“The UEWC has discussed the planned separation of Unilever’s Foods business and its combination with McCormick during an extraordinary meeting with Unilever’s top management. The UEWC made clear that protecting employees, ensuring job security and safeguarding fair working conditions, must be central to the process.”
He went on to say that the European Coordinating Committee (ECC) expressed “serious concerns” over renewed uncertainty for employees, following years of restructuring, which included the slashing of 7,500 jobs in 2024. “From the UEWC’s perspective, it is essential that working conditions are secured on a long‑term and binding basis during the transition to the new Foods company."
According to Reuters, the UEWC is seeking similar long-term security for Foods division employees as it did for those who worked in ice cream when it was spun-off last year – guaranteed employment terms for at least three years. Under European law, companies are required to guarantee workers’ employment terms for just one year.
The UEWC represents around 20,000 Unilever employees across Europe.
Global employees
According to the International Union of Food (IUF), only European workers have been offered a formal consultation by Unilever since the merger was announced, yet emerging markets accounted for 59% of Unilever’s total turnover in 2025.
“There is a lack of information available at local level and a lot of uncertainty and concern - both for those who may be moving to the new company as well as those who will remain at Unilever," says Sarah Meyer, head of the IUF’s international arm for the food processing sector.
The IUF works with more than 30 different international Unilever unions across the world.
In response, a spokesperson for Unilever said: “We are committed to engaging our people with care and transparency throughout this process, including minimising uncertainty as much as possible. This is a transaction built on growth and the strength of Unilever Foods’ talent, R&D and manufacturing will play a vital role in the success of the combined company. We will be completing consultation with our works councils and other employee representatives and we will continue to focus on fully supporting our people over the months ahead.”
Unilever at a strategic crossroads
The fallout from the Unilever-McCormick deal leaves Unilever in a difficult position.
If it’s convinced proceeding with the merger is the right decision then its focus will need to be on getting stakeholders, in particular shareholders, on side – and that could prove difficult.
Investors are unconvinced that shedding the large, cash‑generative Foods division will unlock the value Unilever believes it can, while employees see another major structural change layered onto years of cost‑cutting and reorganisation. That combination poses a big risk – a distracted workforce and a sceptical market are rarely foundations for strong execution.
For the wider food and beverage industry, the message is equally stark. Large‑scale portfolio reshaping, once cheered as evidence of strategic focus, is no longer automatically rewarded. Markets are demanding clearer growth narratives and more robust proof that deals create value beyond balance‑sheet optics. At the same time, employee consultation and communication are moving from a compliance exercise to a reputational and operational imperative, particularly for multinationals with workforces spread across mature and emerging markets.
