CMA Launches Phase 1 Inquiry into McCormick's Acquisition of Majority of Unilever's Foods Business
The Competition and Markets Authority formally launched its Phase 1 merger inquiry on 16 September 2026 into the anticipated acquisition by McCormick & Company, Inc. of the majority of Unilever plc's foods business. The CMA issued a commencement notice to the parties and set a statutory deadline of 11 November 2026 for its Phase 1 decision. The inquiry was opened on 21 July 2026, when the CMA issued an invitation to comment on potential competition impacts in UK food manufacturing markets; that comment period closed on 5 August 2026. The CMA confirmed it had received sufficient information from the parties to move from pre-notification into a formal inquiry. McCormick is one of the world's largest flavour and spice companies; the divested Unilever foods portfolio is a significant consumer brands business. The CMA is assessing whether the transaction may result in a substantial lessening of competition within any UK market for goods or services under the Enterprise Act 2002.
Why this matters
The formal launch of the Phase 1 clock signals that McCormick's deal has moved from voluntary engagement to statutory scrutiny, with the CMA now empowered to compel information and, if concerns arise, refer the transaction to a full Phase 2 investigation. The Unilever foods divestment is a major consumer brands carve-out, meaning the CMA must assess overlaps across multiple product categories simultaneously, a task that raises the probability of either remedies or an extended timetable. The 11 November 2026 Phase 1 deadline leaves little runway: if the CMA is not satisfied, it will need to refer by that date or accept undertakings in lieu. The deal also sits in a UK food manufacturing sector already under regulatory and inflationary pressure, making competition analysis more politically sensitive.
On the Ground
This inquiry activates competition law, M&A regulatory, and carve-out transaction practices simultaneously. Competition counsel on both sides will be preparing substantive submissions and economic analysis ahead of the Phase 1 decision; if a Phase 2 referral follows, the instruction set expands significantly to include remedies work and potentially divestiture support. A trainee in this matter would assist with document gathering for the CMA information request, prepare market definition memos, and track the statutory timetable against merger control obligations in other jurisdictions where parallel filings may be required.
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“What are the key competition risks the CMA is likely to focus on in a Phase 1 review of this deal, and what happens if it isn't satisfied by the November deadline?”
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