Colman’s Mustard has been put up for sale by Unilever, as the FTSE 100 group moves to head off competition concerns ahead of the planned merger of its food division with the American spice giant McCormick.
Bankers from Rothschild have been hired to handle the sale, which was first reported by Sky News.
Under the terms of Unilever’s spin off of its food business, Colman’s and other major Unilever brands such as Marmite were due to move into McCormick as part of a deal creating a £48bn giant. Colman’s will now be sold before the transaction completes, while the rest of the food division is still expected to transfer to the US group. Unilever announced the combination of Unilever Foods with McCormick at the end of March, and the deal is expected to close in mid 2027, subject to McCormick shareholder approval and regulatory clearances.
The mustard pot is the sticking point. McCormick already owns French’s Mustard, and Unilever’s advisers had feared that adding Colman’s to the same portfolio would create a mustard monopoly, handing regulators ammunition to block the wider deal.
“A decision has been taken to market the Colman’s brand and assets to potential buyers in order to proactively seek to address potential competition concerns from the planned combination of Unilever Foods and McCormick,” a Unilever spokesman said. “Discussions are ongoing and the operations continue as usual.”
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