US food company Kraft Heinz Co has withdrawn its proposal for a billion-dollar merger with Unilever.
Kraft made a surprise offer for rival company Unilever in a bid to build a global FMCG giant, but this was flatly rejected by Unilever, the maker of Dove soap and many other well-known brands. Unilever apparently refused the surprise offer from Kraft Heinz on Friday. Kraft was forced to publicly disclose its offer to Unilever to comply with Britain’s takeover regulations, after rumours of its approach to Unilever circulated among stock traders.
“Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies,” the companies said in a joint statement. “Unilever and Kraft Heinz hold each other in high regard. Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever,” they added.
The companies did not provide further details of the failed bid.
A merger of the two companies would have been the third-biggest takeover in history and the largest acquisition of a UK-based company, according to Thomson Reuters.
