March 30 (Reuters) – Unilever is in advanced talks to combine its food business with U.S. spice maker McCormick, in a deal that includes a cash component of around $16 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.

A cash-and-stock deal could be announced as soon as Tuesday, when McCormick is set to report its first-quarter results, according to the report. 

Unilever and McCormick did not immediately respond to Reuters’ requests for comment.

Shares of McCormick jumped about 4% in extended trading following the report.

The proposed combination would offer the British group’s shareholders a majority stake in the new entity and tax benefits, and would be arranged like a so-called reverse Morris trust (RMT), which saves on taxes, Reuters reported last week.

(Reporting by Savyata Mishra in Bengaluru; Editing by Anil D’Silva)