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Kraft Heinz drops Unilever takeover bid | Kraft Heinz drops Unilever takeover bid |
(35 minutes later) | |
Kraft Heinz has said it has dropped its plan to buy Anglo-Dutch rival Unilever. | |
Marmite-maker Unilever rejected the US food giant's bid on Friday, saying it saw "no merit, either financial or strategic" in Kraft's offer, worth about $143bn (£115bn). | |
"Unilever and Kraft Heinz hold each other in high regard," the companies said in a joint statement. | |
The deal would have been one of the biggest in corporate history, combining dozens of household names. | |
Unilever owns Ben & Jerry's ice cream, Dove soap, and Hellmann's mayonnaise, while Kraft's range includes Philadelphia cheese and Heinz baked beans. | |
"It would appear that Kraft Heinz have underestimated both the intrinsic value of Unilever and the challenge of acquiring control of a Dutch company whose stakeholders would have opposed such a move vociferously," said Martin Deboo, a consumer goods analyst at Jefferies International. | |
More than half of the company's shares are in the Dutch-listed entity, he told the BBC. | |
Shares in both companies rose sharply on Friday, as investors welcomed the news. A merger often aims to combine sales while cutting costs, flattering profits. | |
The combined group may have had more power to raise prices through more control over the branded food market. | |
Unilever clashed with UK supermarket Tesco in October over its attempts to raise prices to compensate for the steep drop in the value of the pound. | |
The consumer goods giant has over a dozen sites across the UK, including three major plants in Liverpool, Norwich and Gloucester. |