Unilever Under Siege: Radical McCormick Deal and 13% Share Decline Test Investor Faith
08.06.2026 - 18:25:24 | boerse-global.de
Unilever’s boldest restructuring in decades has failed to inspire the market. While the consumer goods giant presses ahead with a headline-grabbing $45 billion food joint venture with McCormick, its share price has tumbled roughly 13% since the start of the year to around €48.40, just a whisker above the 2025 low of €46.98. The mechanical rise in the dividend yield – next payout of 42.31 pence per share is already ex-dividend – is cold comfort for investors watching the stock slide.
Chief Executive Fernando Fernández is publicly defending the pace of change. The planned fusion of Unilever’s food division with the US spices group via a reverse Morris trust structure will leave the British group with a 65% stake and an annual turnover of some $20 billion. The deal unlocks nearly $16 billion in cash for Unilever, which the board intends to funnel into a €6 billion share buyback programme over the coming years. Yet the industrial logic has been fiercely questioned. Star fund manager Terry Smith of Fundsmith has liquidated his entire Unilever holding, citing anger at activist-driven break-ups and doubts over deal benefits. Analysts at Bernstein worry about the leverage profile of the new food entity, which aims to cut net debt to three times EBITDA within two years – a target many market observers consider ambitious.
Operationally, the picture remains mixed. Unilever’s first-quarter organic revenue growth came in at 3.8%, helped by strong core brands, but management has guided for full-year 2026 sales at the bottom of the 4–6% range, blaming sluggish consumer spending in the US and Europe. The company’s efficiency programme is running ahead of schedule: €750 million of the targeted €800 million in annual savings have already been delivered by mid-year. That progress, however, has not been enough to offset margin pressure from weak demand and rising input costs.
Should investors sell immediately? Or is it worth buying Unilever?
Despite the gloom, several top banks retain a bullish stance. J.P. Morgan has a buy rating with a price target of 5,700 pence, while Bernstein continues to recommend the stock. With a price-to-earnings multiple of around 18, Unilever trades at a discount to its consumer-staples peers. But Barclays analysts caution that operational risk is elevated following the CEO switch and the carve-out of the ice-cream division (Magnum was spun off in late 2025). They argue the new management team must now deliver on margin promises.
Chartwise, the technical picture is fragile. The shares have slipped below the 50-day moving average, while the relative strength index sits at 44.8 – neutral but with a bearish bias. Without a clear recovery in western consumer sentiment or concrete proof that the McCormick deal will boost earnings, the stock lacks near-term momentum. For now, Unilever remains a tale of two narratives: a sweeping strategic overhaul versus a market that is still waiting for results.
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