McCormick marginally down as co in talks to acquire Unilever's food business

Shares of Cholula sauce maker McCormick MKC.N fall ~1% to $53.49

Stock dropped as much as 2.7% earlier in the session to touch its lowest level since June 2018

Co in talks with Unilever ULVR.L to acquire its food business, marking a major shift for the British consumer goods company as it seeks to focus on higher-growth household and personal care businesses

"McCormick is a natural fit as it sits squarely in food CPG and has a lot of the operational and logistical expertise needed to integrate Unilever’s food portfolio," says Neil Saunders, managing director of research firm GlobalData

But Saunders expresses concern on how McCormick will maximize value from the deal as Unilever brands, despite strong quality, face pressure from a soft market

As of last close, stock down 20% YTD