Marmite, the British spread that has divided opinion for decades, is set to move into American ownership following a £50billion transaction announced today.
Unilever has agreed to sell a portfolio of food brands to McCormick & Company in one of the largest deals in the sector in recent years.
The acquisition includes a number of well-known household products, including Colman's mustard, Bovril, Hellmann's mayonnaise, Knorr and Pot Noodle.
These brands will join McCormick’s existing range, which includes French's mustard and Schwartz.
Fernando Fernández, chief executive of Unilever, said the deal would create a "global flavour powerhouse" by combining the two businesses.
Despite Unilever retaining a 65 per cent stake in the combined entity, the business will operate under McCormick’s leadership, with headquarters remaining in the United States.
The merged company is also expected to secure a listing on the New York Stock Exchange.
Under the terms of the agreement, Unilever will receive $15.7billion in cash alongside its majority shareholding.
Marmite sale: Unilever agrees £50billion deal with McCormick for UK food brands
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Plans to deliver $600million in cost savings have raised questions about potential impacts on jobs.
Brendan Foley, chairman of McCormick, said efficiencies would partly come from increased purchasing power with suppliers due to the larger scale of the combined business.
Mr Foley did not confirm whether UK manufacturing sites would remain open following completion of the deal.
Mr Foley said: "When we think about getting more detail about those areas, it is probably detail yet to be shared."
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The merged company is also expected to secure a listing on the New York Stock Exchange.
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Production currently takes place at sites including Burton-on-Trent, where Marmite has been made since 1902, and Norwich, where Colman’s has been produced since 1814.
John Farrand, managing director of the Guild of Fine Food, previously raised concerns about the potential impact of the sale.
Mr Farrand said the brands could "become a number on a spreadsheet".
The deal follows previous acquisitions of British brands by US companies, including Cadbury, which was taken over by Kraft in 2010, and Lea & Perrins.
Pot Noodle is another product being sold as part of the deal
| GETTYThe transaction forms part of Unilever’s broader strategy to reduce its food portfolio, following the sale of its spreads division in 2017 and much of its tea business in 2022, including PG Tips and Lipton.
The company has said it will focus more on home and personal care products such as Dove, Vaseline and Lynx.
Markets reacted to the announcement, with Unilever shares falling by more than seven per cent.
Chris Beckett, an analyst at Quilter Cheviot, said the timeline for the deal could present risks.
"Completion is not expected until mid-2027, which is a long time and introduces risks that mean it could be stopped."