The U.K. Competition and Markets Authority (CMA) said McCormick & Company, Inc.’s planned purchase of most of Unilever plc’s foods business may be expected to substantially lessen competition in one or more U.K. markets.
The authority announced its Phase 1 decision Wednesday, based on evidence available at this stage. The companies can avoid a full Phase 2 investigation if they offer an undertaking addressing the CMA’s concerns and the regulator accepts it. Otherwise, the CMA said it would refer the case for an in-depth review.
The CMA’s timetable dates the inquiry’s launch to Sept. 16. Before that, the authority invited interested parties to submit initial views from July 21 to Aug. 5.
Unilever agreed in March to combine its Foods business with McCormick, a transaction EconoTimes previously mentioned in its coverage of Unilever’s Welly sale. The CMA said a fuller explanation of its decision will be published shortly.
