€3.6bn mustard sale raises appetite for next food deal

Mustard is the new hot thing as US foods giant McCormick agreed to pay a scorching $4.2bn (€3.6bn) for Reckitt Benckiser’s food business, home to brands including French’s mustard and Frank’s RedHot sauce.

The deal comes as speculation swirls about the next round of consolidation in the packaged-food business. In February, Kraft Heinz was spurned in a blockbuster bid to take over Unilever, the British-Dutch maker of Hellmann’s mayonnaise and Knorr soup. In the aftermath, Unilever was cited by analysts as a possible bidder for the Reckitt business.

Nestlé, the world’s largest food company, is also shaking up its portfolio. Under activist pressure to improve results, it’s considering selling its US candy operations.