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Unilever is facing a mounting investor backlash over its recent multibillion-pound tie-up with US food giant McCormick.
Unilever bypassed a shareholder vote on its $45bn merger with McCormick by using recent UK listing reforms.
KEY POINTS
- The new Unilever-McCormick entity will begin with a net debt to EBITDA ratio close to 4:1.
- Many institutional shareholders, restricted to UK/European equities, will be forced to sell shares in the new US-based entity.
- The transaction caused both Unilever and McCormick shares to drop sharply due to debt and governance concerns.
- McCormick will seek a secondary listing in Europe, likely in London or Amsterdam.
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