Unilever's Grocery Deal with McCormick Sparks Investor Backlash

Unilever's deal with McCormick to create a $20 billion company with various food brands has drawn a negative reaction from investors. Shares in Unilever fell 7.3% and McCormick sank 6.3%, erasing billions in market value. Investors are concerned about the deal's structure, with Unilever and its shareholders receiving 65% of the combined company. The deal is a tax-friendly Reverse Morris Trust, which allows Unilever to own the majority of the new entity.