Unilever and Kraft Heinz jointly announced on February 19 that Kraft Heinz has “amicably agreed to withdraw its proposal for a combination of the two companies.”
The brief statement, which went on to say that Kraft Heinz “has the utmost respect for the culture, strategy and leadership of Unilever,” came less than 48 hours after Chicago-headquartered Kraft Heinz offered to buy Unilever for $143 billion. The bid was priced at an 18% premium of Unilever’s stock value at the close of business on February 16.
“Kraft Heinz’s interest was made public at an extremely early stage,” said Michael Mullen, a spokesman for Kraft Heinz. “Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction.”
Shares of Kraft Heinz rose more than 10% and Unilever stock climbed 15% after the acquisition intention was revealed on February 17.
The suitor, backed by billionaire investors Warren Buffet and Jorge Paulo Lemann of 3G Capital of Brazil, is the fifth largest food and beverage company in the world. It sells everything from Ore Ida frozen french fries and Heinz ketchup to Philadelphia brand cream cheese and Weight Watchers Smart Ones ready meals and desserts.
Unilever, an Anglo-Dutch consumer goods giant, has an extensive brand portfolio that includes Ben & Jerry’s, Breyer’s, Magnum and Wall’s ice cream, Skippy peanut butter, Lipton tea and Dove soap.
