Unilever-McCormick deal may hit UK competition, says CMA

(Sharecast News) - Unilever's planned $65bn merger of its foods business with US spices maker McCormick has run into UK regulatory scrutiny after the Competition and Markets Authority said the deal could reduce competition.

The watchdog said on Wednesday it would launch an in-depth Phase 2 probe unless the companies submit undertakings to address its concerns by 18 November.

Unilever announced the deal in March, combining its foods division, which includes Hellmann's mayonnaise and the Knorr brand, with McCormick, owner of Frank's RedHot and French's mustard, in one of the largest transactions ever seen in the food sector.

Reporting by Frank Prenesti for Sharecast.com