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Unilever has agreed to protect the employment terms of workers across its European and British food business for two years following its planned merger with US spice maker McCormick, Reuters has reported.

The commitment, which is understood to be twice as long as the protection typically offered in deals of this nature, will apply to employees of the newly formed McCormick-Unilever Foods business until at least mid-2029.

The merger, agreed upon in March, is expected to complete in mid-2027, subject to the required approvals and conditions. It values Unilever's Food business at around $44.8 billion, with the combined entity set to be worth around $65 billion.

The planned transaction will combine Unilever's food business with McCormick to create a standalone food company, as Unilever continues its strategy of simplifying its portfolio and focusing on its core consumer brands.

According to Reuters, which cited a memo seen by its reporters, the commitment extends beyond the protections generally provided under European Union and UK legislation, where employee contracts and collective agreements can typically be renegotiated one year after a sale or spin-off.

Unilever has not confirmed or denied the details of the report, but a spokesperson for the company told FoodBev: “We continue to engage constructively with our European and national works councils. We have made good progress over the past few weeks and have agreed commitments in Europe regarding the protection of employees’ terms and conditions and consultation timelines. The consultations will continue throughout the summer as we work through the remaining topics.”

The two companies are expected to continue working through employee consultation and other transaction-related matters ahead of the anticipated mid-2027 completion.