McCormick's Unilever deal could be the perfect buy for Berkshire's Abel

Corporate Action
โดย Motley Fool·Read original
Summary · why it matters

Greg Abel, who took over as Berkshire Hathaway CEO in 2026, should consider buying into McCormick as it plans to acquire Unilever's food business, despite the earlier Kraft Heinz merger's poor outcome. McCormick, an industry-leading spice and flavor company, is looking to roughly double its size by purchasing Unilever's well-run brands like Hellmann's and Knorr, a deal requiring about $16 billion in cash. With Berkshire holding nearly $400 billion in cash, Abel could help finance the transaction, potentially securing preferred stock, while McCormick's stock offers a historically high 3.7% yield and a low price-to-earnings ratio of around 9x. Unlike the struggling Kraft and Heinz, McCormick and Unilever's food unit are strong businesses, making this a more compelling investment than a cost-cutting merger.

Impact on stocks 6

Consumer Staples± Mixed · 4 stocks
McCormick & Company Incorporated
MKC
▲ PositiveCapitalrelevance

Article discusses McCormick's plan to acquire Unilever's food business, highlighting its strong businesses, high yield, and low P/E, making it a compelling investment.

Unilever PLC
UNLYD
▲ PositiveCapitalrelevance

Article states Unilever is selling its well-run food brands (Hellmann's, Knorr) in a deal that could be financed by Berkshire, implying a positive valuation event for Unilever.

The Kraft Heinz Company
KHC
▼ NegativeCompetitionrelevance

Article contrasts McCormick/Unilever deal with the earlier Kraft Heinz merger's poor outcome, implying Kraft Heinz is a weaker business.

Energy Transition & Power Demand▲ · 1 stocks
Berkshire Hathaway Inc
BRK-B
▲ PositiveCapitalrelevance

Article suggests Berkshire's CEO Abel could finance the deal, potentially securing preferred stock, implying a positive investment opportunity.

Financials▲ · 1 stocks
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