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Stock impact report

Unilever Food Split Talks With McCormick Reshape Focus And Valuation Gap [Yahoo! Finance]

Unilever PLC American Depositary Shares (each representing One Ordinary Share) (UL) 
US:NYSE Investor Relations: unilever.com/investor-relations
Company Research Source: Yahoo! Finance
Unilever is reportedly in advanced talks to separate its food division and explore an all stock merger with McCormick. The potential deal would refocus Unilever on beauty and personal care while creating a new packaged foods player. The transaction is described as under serious discussion and could be announced within weeks. For investors watching LSE:ULVR, this reported move comes as the shares trade around £45.74, with a 15.5% decline over the past month and a 5.3% decline over the past week. Over a 5 year horizon, the stock shows a 25.6% total return, which puts the current news into a longer term context for holders assessing their position. If Unilever proceeds with a separation and potential merger of its food unit with McCormick, the company would become more focused on beauty and personal care brands. Investors may want to pay attention to how any deal is structured, what happens to cash flows and dividends, and how management frames capital allocation priorities for Show less Read more
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