According to informed sources, Unilever is negotiating the spin-off of its food business and its subsequent merger with spice manufacturer McCormick. The transaction is expected to be completed on an all-stock basis and could be finalized within weeks.

Currently, amid uncertain economic conditions, consumer goods companies are facing weakening demand for packaged foods. Earlier this week, reports indicated that Unilever was considering a broader separation of its food assets.

On Wednesday, it was reported that Unilever and Kraft Heinz had recently held talks regarding a potential merger of certain parts of their food businesses, but those discussions have since concluded.