(Bloomberg)—Kraft Heinz withdrew its $143 billion bid for Unilever two days after the approach became public amid stiff opposition from the Anglo-Dutch target to engage in discussions.
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- Would be 3rd biggest deal, largest ever in consumer staples sector, largest ever cross border deal.
- The proposed deal, which would be the largest-ever takeover in the food or beverage industry, would create a company with combined sales of $84.8 billion last year, second only to Nestle.
LONDON (Reuters) - Unilever (UL) said it saw no merit in a proposed merger with U.S. food group Kraft Heinz Co (KHC) after rejecting a $143 billion offer, saying it "fundamentally undervalues" the Anglo-Dutch consumer goods giant.
Unilever said it had received an offer of $50 per share, made up of $30.23 in cash and the remainder in stock in the new group, representing a premium of 18 percent.
"This fundamentally undervalues Unilever," it said on Friday. "Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions."
The Kraft Heinz Company (KHC) notes the recent speculation regarding a possible combination of Kraft and Unilever plc / Unilever NA.
- Kraft confirms that it has made a comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living.
- While Unilever has declined the proposal, the co states it looks forward to working to reach agreement on the terms of a transaction.
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