McCormick & Company and Unilever announced Tuesday a $60 billion agreement to merge McCormick with Unilever’s food division, creating one of the largest food companies in the world. The combined entity will operate under the McCormick name and leadership, while Unilever and its shareholders are expected to hold a 65% ownership stake.

Under the terms of the deal, Unilever will receive approximately $29.1 billion in equity along with $15.7 billion in cash. McCormick shareholders will retain a 35% stake in the new company. The merger brings together McCormick’s global spice and seasoning business with Unilever’s portfolio of food brands, including products such as Hellmann’s mayonnaise and Knorr soups.

The companies said the combined business is projected to generate roughly $20 billion in annual revenue based on 2025 figures. The transaction is expected to close by mid-2027, pending regulatory and shareholder approvals. Certain regional operations, including Unilever’s food business in India, Nepal, and Portugal, are excluded from the deal.

The move comes as Unilever continues efforts to streamline its operations and focus more heavily on its beauty and personal care segments. In recent years, the company has spun off or sold several food-related brands, including its ice cream business and plant-based product lines.

McCormick, headquartered in Maryland, has pursued growth through acquisitions and expansion into sauces and international flavors. Company leadership said the merger aligns with its long-term strategy to strengthen its position in the global food market.

Investors responded modestly to the announcement, with shares of both companies rising slightly in early trading.