McCormick Targets 76.55% Stake In Unilever Pakistan Foods In Major Takeover
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✧ GENERATE BRIEFING
Maryland-based spice and flavoring giant McCormick & Company, Inc. (NYSE: MKC) formally submitted a Public Announcement of Intention (PAI) to the Pakistan Stock Exchange (PSX) on Wednesday, October 21, 2026, to acquire a controlling 76.55% equity stake (4,876,294 shares) in Unilever Pakistan Foods Limited (PSX: UPFL). The local acquisition is executed via Arif Habib Limited (Manager to the Offer) as part of McCormick’s global merger agreement signed on March 31, 2026, to acquire substantially all of Unilever PLC’s global food business. Key transaction elements, takeover regulations, and valuation dynamics include: Target Equity & Seller: McCormick will acquire 4,876,294 shares directly or indirectly from UPFL’s majority parent entity, Conopco, Inc., alongside a mandatory public tender offer required under Pakistani takeover laws. Valuation & Target Market Capitalization: Based on UPFL’s closing share price of Rs25,352 on October 20 (and a 28-day volume-weighted average price of Rs25,308), the 76.55% target stake carries a market valuation of approximately Rs123.6 billion ($445 million), valuing UPFL at Rs161.5 billion total market capitalization.
US-based food company McCormick & Company has announced its intention to acquire at least 76.55% of Unilever Pakistan Foods Limited and obtain control of the listed Pakistani company, according to a regulatory announcement issued on Wednesday.
The proposed transaction covers approximately 4.88 million shares and forms part of a broader agreement involving McCormick’s combination with substantially all of Unilever PLC’s global food business, subject to specified exclusions. The global agreement was announced on March 31, 2026.
Structure of Takeover and Manager to Offer
Under the proposed arrangement, McCormick intends to acquire 4,876,294 shares in Unilever Pakistan Foods directly or indirectly from existing majority shareholder Conopco, Inc. A public offer is also envisaged under Pakistan’s takeover regulations, with the transaction subject to required regulatory approvals, including clearance from the Competition Commission of Pakistan (CCP).
Investment banking firm Arif Habib Limited has been appointed as the manager to the offer. The proposed acquisition is part of McCormick’s wider plan to expand its position in the global food and flavour industry through the combination with Unilever’s food operations.
Financial Performance and Market Valuation
Unilever Pakistan Foods reported net sales of Rs40.57 billion in 2025, compared with Rs33.71 billion in 2024. Despite the increase in sales, the company’s net profit declined to Rs5.95 billion from Rs6.98 billion in the previous year, according to figures cited in the regulatory announcement.
The company had approximately 6.37 million issued ordinary shares, each carrying a face value of Rs10. Its share price closed at Rs25,352 on the trading day preceding the announcement, while the 28-day weighted average share price through October 20 stood at Rs25,308, valuing the transaction stake at over Rs123 billion.
Global Combination and Brand Integration
McCormick, headquartered in Maryland, United States, manufactures and distributes spices, herbs, seasonings and condiments. Its international brand portfolio includes McCormick, French’s, Frank’s RedHot and OLD BAY.
The proposed global combination is intended to bring McCormick together with substantially all of Unilever’s food business, subject to agreed exclusions. The Pakistani transaction forms part of this wider corporate development.
The proposed acquisition of Unilever Pakistan Foods has not yet been completed. Its progress will depend on applicable regulatory approvals and the requirements governing the acquisition of shares and control of a listed company in Pakistan.
