Unilever Pakistan Foods is set to change hands. US spice maker McCormick & Company told the Pakistan Stock Exchange on Wednesday 21 October that it intends to buy at least 76.55% of the listed food company, the stake now held by Unilever’s US arm Conopco, and then make a public offer to other shareholders. The move is the Pakistani leg of a global deal, agreed on 31 March, under which McCormick takes over substantially all of Unilever’s food business.
The short version
- McCormick plans to buy 4,876,294 Unilever Pakistan Foods shares (76.55%) from Conopco, then make a public offer under Pakistan’s takeover rules.
- No price has been disclosed. The shares closed at Rs25,352 the day before, valuing the company at about Rs161bn (Knock-On calculation).
- Sales rose 20% in 2025 to Rs40.57bn, but profit fell 15% to Rs5.95bn.
- The deal needs regulatory approvals, including the Competition Commission of Pakistan.
What happened
In a public announcement of intention filed with the Pakistan Stock Exchange, McCormick said it will acquire the Unilever Pakistan Foods stake directly or through affiliates, as part of its wider merger agreement with Unilever PLC. Arif Habib Limited is the manager to the offer. McCormick holds no voting rights in the company today, Profit reported from the filing.
The number of shares to be sought in the later public offer has not been set. The offer will be made under Regulation 14 of the 2017 takeover regulations, and McCormick may withdraw if approvals are not obtained. The filing quoted a 28-day weighted average share price of Rs25,308 for 23 September to 20 October, but gave no acquisition price.
Globally, the deal values Unilever’s food unit at about $44.8bn including debt, made up of $29.1bn in McCormick stock and $15.7bn in cash, according to Yahoo Finance. Knorr and Hellmann’s account for about 70% of the unit’s sales. Closing is expected by mid-2027.
Sales grew 20% in 2025, but profit fell 15%
Unilever Pakistan Foods, net sales and profit after tax, Rs bn
Why it matters
A change of parent at Unilever Pakistan Foods decides who sets its strategy, its dividend policy and its sourcing. The company paid out more than it earned in 2025: a dividend of Rs1,651 a share against earnings of Rs933.50, and shareholders’ equity fell from Rs13.38bn to Rs6.37bn. Investors will watch whether a new owner keeps that payout pattern. The deal also comes as the PSX swings day to day; the KSE-100 regained 779 points on Wednesday, as covered in our KSE-100 today report.
The knock-on effects
First order: Unilever Pakistan Foods shareholders wait for a price
Minority holders own about 1.49m shares, worth roughly Rs37.9bn at the last close (Knock-On calculation). Pakistan’s takeover rules require a public offer, but its price and size are not yet known, so the share price may track expectations rather than earnings until terms are published.
Second order: competition review
The Competition Commission of Pakistan must clear the deal. This week it cleared Lotte Chemical’s acquisition of ECL’s entire stake in EPCL, Business Recorder reported, so large foreign deals are moving through the process. The review timing will shape when the public offer opens.
Third order: foreign investor signal
The global deal keeps the Pakistani unit inside a multinational food group rather than leading to its sale, which brokers and other foreign-owned listed companies will note. It sits alongside fresh listings such as the Khaadi IPO in a market trying to deepen its consumer sector.
Who could benefit
- Minority shareholders if the public offer is priced near or above recent market levels.
- Brokers and advisers, including the offer manager, from transaction work.
- Local suppliers if McCormick adds its own seasoning brands to the Pakistani business; it has not said it will.
Who may face pressure
- Income investors if a new owner cuts the high payout ratio.
- Rival food makers if a focused food owner spends more on local marketing.
What to watch
- Newspaper publication of the announcement, due within two working days of 21 October.
- The Competition Commission of Pakistan’s decision.
- The public offer price and number of shares sought.
- Global deal closing, expected by mid-2027.
Sources
- Profit by Pakistan Today, McCormick plans to acquire 76.55% of Unilever Pakistan Foods, 21 Oct 2026
- Business Recorder, US spice maker McCormick announces plan to acquire majority stake in Unilever Pakistan Foods, 21 Oct 2026
- Yahoo Finance, McCormick buying Unilever food business in $45 billion deal, 31 Mar 2026
- Business Recorder, ECL’s entire EPCL stake: CCP clears Lotte Chemical’s acquisition, 21 Oct 2026
This is analysis, not investment advice. Figures are as of 21 Oct 2026.
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