Jim Cramer and Elizabeth Warren are on the ‘same side’ arguing against $45B food giant merger — but for very different reasons

“I have concerns that McCormick and Unilever’s $45 billion merger could increase YOUR grocery prices,” Warren wrote in a post on Oct. 13.

Cramer, meanwhile, has a different objection. He thinks McCormick is “paying way too much” for Unilever’s food business, putting him on the “same side” as Warren, as he jokingly acknowledged.

The unlikely alliance shows how investors and lawmakers can look at the same deal through entirely different lenses: Warren sees a potential threat to grocery prices, while Cramer sees an expensive acquisition.

Announced March 31, the agreement calls for Unilever to spin off most of its food business and combine it with McCormick, creating a company with roughly $20 billion in annual sales.

The $44.8 billion valuation of Unilever’s food business helps explain Cramer’s concern. Under the agreement, Unilever will receive $15.7 billion in cash, while its shareholders will own 55.1% of the combined company. Unilever itself will retain a 9.9% stake, leaving existing McCormick shareholders with 35%.

The transaction has already cleared a major U.S. antitrust hurdle. On Oct. 5, the Federal Trade Commission (FTC) granted early termination of the mandatory waiting period, allowing the deal to move forward without further delay under that requirement.

However, regulatory scrutiny continues in the U.K., where the Competition and Markets Authority is reviewing the proposed combination. Its initial decision is due by Nov. 11. The companies expect the merger to close in mid-2027, subject to remaining approvals.

Why McCormick is willing to pay a premium

For McCormick, Unilever’s appeal goes well beyond adding a few familiar names to its portfolio. The merger would expand its reach across herbs, spices, seasonings, condiments and cooking products, giving the combined company more clout with grocery retailers.

As CNBC reported, roughly 70% of Unilever’s food sales come from its two biggest brands, Hellmann’s and Knorr, which would sit alongside McCormick’s existing lineup of spices, sauces and seasonings.

The deal also gives McCormick a larger international footprint, particularly in Latin America and Asia, where Unilever has an established presence. By comparison, McCormick has traditionally relied more heavily on North America.

Frederic Fernandez, an M&A consultant and partner at Frederic Fernandez Associates, believes McCormick is buying its way into a much bigger opportunity. In a post on LinkedIn, he argued the merger could create a new industry leader, benefiting from growing demand for affordable meals and changing eating habits influenced partly by GLP-1 weight-loss drugs.

McCormick is also counting on substantial cost savings to help justify the deal. The companies expect about $600 million in annual cost savings by the third year after closing.

Could the merger make groceries more expensive?

As Warren noted, the merger is raising concerns about grocery prices at a time when Americans are already paying considerably more for food. An Associated Press analysis of government data shows grocery prices rose 33% between 2019 and June 2026, compared with just 6.4% over the preceding 7 1/2 years.