Updates

** Shares of McCormick MKC.N down 6% at $50.42

** McCormick to merge with Unilever's ULVR.L food business, creating a company worth roughly $65 billion

** Unilever shares down 4% after the announcement

** "What we really can't get our heads round is why Unilever is disposing of a business dominated by two brands, of which it owned 100%, for a minimal control premium," says analyst at RBC

** Deal will be structured as so-called Reverse Morris Trust (RMT)

** ULVR will receive $15.7 billion in cash and its shareholders will get a 65% stake in the combined company

** "We're also dubious about the cultural justification for combing a brand-oriented business in Unilever with McCormick's spices and flavours business which, we think, is less brand-oriented than Unilever" - RBC

** MKC beat its first quarter sales and profit estimates on steady demand

** As of last close, MKC down ~21.13% YTD