KARACHI — US-based food and flavourings company McCormick & Company has announced plans to acquire at least 76.55% of Unilever Pakistan Foods Limited (UPFL), the listed Pakistani food manufacturer behind well-known brands including Knorr and Rafhan.
The proposed acquisition involves 4,876,294 shares and would give McCormick control of the company if the transaction is completed. The intention was disclosed to the Pakistan Stock Exchange (PSX) on Wednesday, October 21, 2026, through Arif Habib Limited, which is acting as manager to the offer.
The announcement forms part of McCormick's wider agreement with Unilever to combine their global food businesses. The proposed Pakistani acquisition remains subject to regulatory approvals, including clearance from the Competition Commission of Pakistan (CCP).
Although the shares covered by the proposal have an indicative market value of approximately Rs 123 billion, no actual purchase price has been disclosed.
Is McCormick Buying Unilever Pakistan Foods for Rs 123 Billion?
The October 21 announcement does not state how much McCormick has agreed to pay for the controlling stake. The Rs 123 billion figure is instead calculated using historical share prices reported in the takeover filing.
According to the PSX announcement and the acquisition details reported by Profit by Pakistan Today, UPFL's weighted-average share price from September 23 to October 20, 2026, was Rs 25,308.
Multiplying that reference price by the 4,876,294 shares McCormick intends to acquire gives approximately Rs 123.41 billion.
The filing also reported a price of Rs 25,352 on the trading day preceding the announcement. Using that price would value the same block of shares at around Rs 123.62 billion.
Neither amount is a confirmed acquisition price. Both figures are estimates based on share-market prices before the announcement. The amount ultimately paid could be different.
The final price for any subsequent public offer to other shareholders has also not been announced.
Who Owns Unilever Pakistan Foods?
UPFL is a Pakistan Stock Exchange-listed company that manufactures and sells consumer and commercial food products. Its brands include Knorr, Rafhan, Hellmann's, Energile and Glaxose-D.
According to the company's 2025 annual report, its existing controlling shareholder is Conopco, Inc., a US-based company within the Unilever group.
Conopco holds 4,876,294 of UPFL's 6,369,950 issued ordinary shares, representing approximately 76.55% of the company.
That is the same block of shares covered by McCormick's proposed acquisition. Other shareholders hold the remaining shares.
The takeover disclosure states that McCormick currently holds no voting rights in UPFL, either directly or through parties acting in concert.
The proposed purchase would therefore change the controlling ownership of an existing Pakistani company. It does not represent a separate sale of Knorr or Rafhan as individual brands.
No confirmed plans to change product names, retail prices, local manufacturing operations or employment were announced in the Pakistani acquisition disclosure.
How Is the Acquisition Connected to the Global McCormick–Unilever Deal?
McCormick's proposed acquisition follows an international agreement announced on March 31, 2026, to combine McCormick with substantially all of Unilever's Foods business, subject to specified exclusions and the necessary approvals.
In its official announcement, Unilever said the proposed combination would bring together brands including McCormick, Knorr, Hellmann's, French's and Cholula.
The international agreement places an enterprise value of approximately $44.8 billion on the Unilever Foods business being combined with McCormick.
The companies said the combined business would have approximately $20 billion in revenue, based on 2025 financial data.
Those figures refer to the global combination, not the valuation or purchase consideration of Unilever Pakistan Foods.
Under the announced structure, Unilever's shareholders would own approximately 55.1% of the combined company, Unilever itself would retain 9.9%, and existing McCormick shareholders would hold 35%.
Unilever would also receive a cash payment of $15.7 billion, subject to closing adjustments. That payment is part of the global transaction and must not be confused with the price of the proposed Pakistani acquisition.
The global combination is targeted for completion by mid-2027, subject to approvals and other conditions. No separate confirmed closing date has been announced for the proposed UPFL share purchase.
Unilever Pakistan Foods had previously informed the PSX in March that the international agreement was expected to change the ultimate ownership and control of its existing majority shareholding.
What Do Unilever Pakistan Foods' Financial Results Show?
UPFL's audited 2025 financial results show that net sales increased to approximately Rs 40.57 billion, compared with Rs 33.71 billion in 2024.
However, profit after tax fell to approximately Rs 5.95 billion in 2025 from Rs 6.98 billion a year earlier.
Earnings per share declined from Rs 1,094.93 in 2024 to Rs 933.50 in 2025.
For the first six months of 2026, the company reported approximately Rs 25.26 billion in sales and Rs 4.34 billion in profit after tax, according to financial information cited in the October 21 takeover announcement.
These interim figures cover only half a year and should not be compared with full-year results as if they represent the same period.
The financial results provide context about the scale and profitability of the Pakistani business but do not establish what McCormick will eventually pay for the controlling stake.
What Approvals Are Required Before the Acquisition?
McCormick's intention to acquire the controlling stake remains subject to regulatory approvals, including clearance from the Competition Commission of Pakistan.
The proposed transaction would involve acquiring the existing controlling block through an agreement, either directly or through one or more McCormick affiliates.
A subsequent public offer is contemplated under Pakistan's Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017.
The filing says the number and percentage of shares to be covered by that public offer have not yet been determined. The purchase price for the offer also remains undisclosed.
The announcement further provides for McCormick to withdraw its acquisition intention, including if the necessary regulatory approvals are not obtained.
Business Recorder separately confirmed the acquisition proposal, the regulatory conditions and the company's recent financial performance.
For shareholders, the next steps will depend on regulatory decisions and further disclosures about the acquisition terms and public offer.
For consumers, the announcement does not establish any immediate change in the availability, branding or prices of Knorr, Rafhan and other UPFL products.
McCormick has taken a formal step towards acquiring control of Unilever Pakistan Foods, but the proposed purchase has not yet been completed and the final consideration remains undisclosed.
