WorldStage– Eight days after it sealed a $44.8 billion deal with America’s food (spice) industry leader McCormick &Co Inc., Unilever Plc disclosed to its Nigerian shareholders that the food segment of Unilever Plc will go into merger.
The transfer includes Knorr and Royco which the Nigerian subsidiary produces, from which it generated 60 percent of Unilever Nigeria Plc’s N214 billion revenue in 2025.
“At this stage, the company is evaluating the specific implications of this global transaction on its local operations and corporate structure,” a notice Peter Dada, company secretary, published on NGX April 8 stated.
The merger talk that started last year and concluded March 31 will see McCormick acquire 35 percent while Unilever shareholders and Unilever respectively keep 55.1 percent and 9.9 percent of the new company stakes.
Unilever plans to sell its stake later.
According to the deal, McCormick will pay $15.7 billion in cash, and offers equities for the balance.
Unilever will spend the cash on paying debts, financing separation costs, tax costs, and share buy-backs for two years, according to information available on the parent company’s website.
Unilever Plc said it would thereafter concentrate on the personal and wellbeing brands, winners in the company’s global business. They, however, trail behind the food segment in Nigeria.
The new company will take on most of McCormick brand identity, including name, and global headquarters in Maryland, US.
McCormick CEO and CFO will also be in charge, with some Unilever senior management staff.
The Nigerian operation said detailed information regarding the merger is not available yet.
“Timeline and any subsequent changes to the operations of the company will be shared with the Exchange and the shareholders when it is received from the parent company,” the secretary said in the notice.
Unilever Nigeria current capitalization stands at N594 billion, with 5.7 trillion outstanding shares.
