McCormick to acquire at least 76.55% stake in Unilever Pakistan Foods
KARACHI: US food and flavourings giant McCormick & Company plans to acquire at least 76.55 per cent of Unilever Pakistan Foods Limited, taking control of the Pakistani company as part of a wider global transaction with Unilever PLC.
The public announcement of intention, dated October 21, was submitted through Arif Habib Limited, which is acting as the manager to the offer. The proposed acquisition remains subject to regulatory approvals.
Under the plan, McCormick intends to buy 4,876,294 shares of Unilever Pakistan Foods through an agreement. The shares represent 76.55 per cent of the company’s shareholding. The number of shares to be picked up through a subsequent public offer has not been fixed yet.
Part of a global Unilever PLC deal
The Unilever Pakistan Foods acquisition forms part of a global transaction agreed between Unilever PLC and McCormick on March 31, 2026. Under that agreement, McCormick plans to take sole control of substantially all of Unilever PLC’s global food business, subject to agreed business exclusions.
Unilever Pakistan Foods is the Pakistani entity covered by the transaction. The announcement states that the deal requires the necessary regulatory approvals, including clearance from the Competition Commission of Pakistan. It adds that the proposed announcement of intention may be withdrawn if the required approvals are not granted.
Share price and deal size
According to the disclosure, Unilever Pakistan Foods had 6,369,950 ordinary shares, each with a face value of Rs10. The company’s share price stood at Rs25,352 on the day before the announcement.
Its weighted average share price was Rs25,308 between September 23 and October 20, 2026. These figures will matter to minority shareholders, because the public offer price is usually linked to recent trading levels under Pakistan’s takeover rules.
The transaction is expected to create a group with nearly $20 billion in annual revenue. The combined portfolio brings together major brands including Knorr, Hellmann’s, French’s and Cholula.
The shares trade on the Pakistan Stock Exchange, where the benchmark KSE-100 has seen sharp swings in recent weeks. The announcement adds another large corporate development to a market that has been tracking foreign investment moves closely.
What it means for Pakistani consumers
For Pakistani shoppers, the change of ownership is unlikely to alter shelves in the short term. Knorr is one of the most recognised food brands in the country, and Hellmann’s has a growing presence in urban markets.
The real test will be whether McCormick keeps investing in local manufacturing and distribution. Food companies in Pakistan compete hard on price, and any disruption in supply chains would be felt quickly by retailers.
The deal also fits a wider pattern of foreign investor interest in Pakistan. It follows other recent moves, including BYD’s plans to rely on imports initially through Hubco, and comes as the government pushes an export-led growth agenda. Earlier this month, Spanish businesses were invited to explore opportunities in Lahore and Sialkot, another sign of efforts to draw overseas capital.
McCormick, founded in 1889 and headquartered in Maryland in the United States, manufactures, markets and distributes herbs, spices, seasoning mixes, sauces, condiments and other flavour-related products. It supplies the food and beverage industry in about 150 countries and territories. The company has described the acquisition of Unilever’s global food business as part of its planned expansion through the transaction.
Key facts
| Detail | Information |
|---|---|
| Acquirer | McCormick & Company (United States) |
| Target | Unilever Pakistan Foods Limited |
| Stake | At least 76.55% (4,876,294 shares) |
| Manager to the offer | Arif Habib Limited |
| Global deal date | March 31, 2026 |
| Key approval | Competition Commission of Pakistan |
| Combined annual revenue | Nearly $20 billion |
The deal now moves to the regulators. Until the Competition Commission of Pakistan clears it, the acquisition remains a proposal, and the announcement can be withdrawn.
Frequently asked questions
What is McCormick acquiring in Pakistan?
McCormick plans to acquire at least 76.55 per cent of Unilever Pakistan Foods Limited, or 4,876,294 shares, through an agreement. A public offer for more shares will follow, though its size has not been decided.
Why is McCormick buying Unilever Pakistan Foods?
The Pakistani acquisition is part of a global transaction under which McCormick agreed with Unilever PLC on March 31, 2026, to take sole control of substantially all of Unilever PLC’s global food business, subject to agreed exclusions.
What approvals does the deal need?
The acquisition needs regulatory approvals, including clearance from the Competition Commission of Pakistan. The announcement says it may be withdrawn if the approvals are not granted.
Will Knorr and Hellmann’s remain available in Pakistan?
Both brands sit in the portfolio covered by the transaction. No changes to products or availability have been announced.
