USA: Kraft Heinz withdraws proposal to buy Unilever

Kraft Heinz, one of the world’s largest food and beverage firms, has decided to step back after FMCG giant Unilever rejected its merger offer on Friday.

The takeover, that would have created the second largest FMCG multinational in the world Nestle, has been “amicably withdrawn”, according to a joint statement between the two companies.

According to the same 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".

Kraft Heinz’s offer was forced to be publicly disclosed to comply with Britain’s takeover regulations.  It cannot now be renewed for the next 6 months.

"Kraft Heinz’s interest was made public at an extremely early stage", Kraft Heinz spokesman Michael Mullen said in a statement. "Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction. It is best to step away early so both companies can focus on their own independent plans to generate value".

Source: Financial Times