Kraft Heinz withdraws bid for Unilever, citing ‘amicable agreement’

American food giant Kraft Heinz on Sunday abandoned its efforts to take over Anglo Dutch peer Unilever.

The two conglomerates issued a joint press statement stating that ‘Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies.’

‘Unilever and Kraft Heinz hold each other in high regard,’ the statement continued. ‘Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.’

On Friday, Unilever rejected the €130bn takeover bid made by Kraft Heinz, stating that the offer of $50 a share, made up of $30.23 in cash and the rest in stock, ‘fundamentally undervalues’ the company.

No merit

‘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 Anglo Dutch group said in a statement.

Kraft Heinz is backed by Brazil’s 3G and Warren Buffett. The offer ‘set the stage for a battle between two of the largest consumer goods companies in the world’, the Financial Times said.

Kraft Heinz spokesman Michael Mullen told the New York Times: ‘Kraft Heinz’s interest was made public at an extremely early stage. 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,’ he said.

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