McCormick to buy at least 76.55% of Unilever Pakistan Foods, maker of Knorr, in global deal

US food and flavourings company McCormick & Company plans to acquire at least 76.55% of Unilever Pakistan Foods Limited, the listed company that sells Knorr in Pakistan. A public announcement of intention dated 21 October 2026 was submitted through Arif Habib Limited, the manager to the offer, ProPakistani and Business Recorder reported.

The numbers

• Shares to be bought under the agreement: 4,876,294, which is 76.55% of the company.
• Total shares in issue: 6,369,950 ordinary shares of Rs 10 each.
• More through a public offer: McCormick will then make a public offer to the remaining shareholders. How many shares it buys that way is not yet known.
• Share price before the news: Rs 25,352 at the previous close, with a weighted average of Rs 25,308 between 23 September and 20 October 2026.

The offer price has not been published. Under Pakistan's takeover rules, a buyer that crosses the control threshold in a listed company must offer to buy shares from the other shareholders as well, which is why a public offer follows the main agreement.

Why it is happening

The Pakistani sale is one piece of a much bigger transaction. Unilever PLC and McCormick agreed on 31 March 2026 to combine Unilever's food business with McCormick, a deal that brings brands such as Knorr and Hellmann's together with McCormick's French's and Cholula. The combined group is expected to have close to $20 billion in annual revenue. McCormick, founded in 1889 and based in Maryland, supplies the food industry in about 150 countries and territories.

Unilever Pakistan Foods is one of the most expensive shares on the Pakistan Stock Exchange by price, with each share trading above Rs 25,000, and one of the most tightly held, with only about 6.4 million shares in issue.

What still has to happen

The acquisition needs regulatory approvals, including from the Competition Commission of Pakistan (CCP). The announcement says it may be withdrawn if those approvals are not granted. The CCP approved another large takeover this week, Lotte Chemical's purchase of Engro Polymer, which we reported on Monday.

What it means for you

For shoppers, nothing changes yet: Knorr noodles, soups and sauces stay on the shelves under the same brand. For shareholders, the important number is the public offer price, which will be set out in the formal offer documents. Minority shareholders can choose whether to sell into the offer.

If you hold shares and are weighing a sale, our capital gains tax calculator shows what tax applies to the profit. Follow the market on our KSE-100 page.