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| Kraft Heinz Withdraws $143 Billion Offer to Merge With Unilever | Kraft Heinz Withdraws $143 Billion Offer to Merge With Unilever |
| (about 1 hour later) | |
| LONDON — Kraft Heinz has withdrawn its $143 billion proposal to create a consumer goods giant by combining with Unilever, the companies said Sunday. | LONDON — Kraft Heinz has withdrawn its $143 billion proposal to create a consumer goods giant by combining with Unilever, the companies said Sunday. |
| The companies said Kraft Heinz had agreed to do so after amicable talks. | The companies said Kraft Heinz had agreed to do so after amicable talks. |
| Their statement was brief. “Unilever and Kraft Heinz hold each other in high regard,” the companies said. “Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.” | Their statement was brief. “Unilever and Kraft Heinz hold each other in high regard,” the companies said. “Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.” |
| But Michael Mullen, a Kraft Heinz spokesman, offered more detail on why the company had stepped away so soon from its bid. “Kraft Heinz’s interest was made public at an extremely early stage,” he said. “Our intention was to proceed on a friendly basis, but it was made clear Unilever did not wish to pursue a transaction.” | But Michael Mullen, a Kraft Heinz spokesman, offered more detail on why the company had stepped away so soon from its bid. “Kraft Heinz’s interest was made public at an extremely early stage,” he said. “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 added. | “It is best to step away early so both companies can focus on their own independent plans to generate value,” he added. |
| The withdrawal came two days after Kraft Heinz announced that it had made a surprise offer to acquire Unilever, the maker of Dove soap and Axe body spray, Ben & Jerry’s ice cream and Hellmann’s mayonnaise. | The withdrawal came two days after Kraft Heinz announced that it had made a surprise offer to acquire Unilever, the maker of Dove soap and Axe body spray, Ben & Jerry’s ice cream and Hellmann’s mayonnaise. |
| The offer was quickly rejected by Unilever, but Kraft Heinz signaled on Friday that it was prepared to continue its push for a combination. | The offer was quickly rejected by Unilever, but Kraft Heinz signaled on Friday that it was prepared to continue its push for a combination. |
| Unilever said on Friday that the offer — an 18 percent premium to its closing price on Thursday — “fundamentally undervalues” the British-Dutch company. It also said it saw no basis for further discussions. | Unilever said on Friday that the offer — an 18 percent premium to its closing price on Thursday — “fundamentally undervalues” the British-Dutch company. It also said it saw no basis for further discussions. |
| Under British takeover law, Kraft Heinz had until March 17 to announce a formal intention to acquire the company. | Under British takeover law, Kraft Heinz had until March 17 to announce a formal intention to acquire the company. |
| The transaction, if it had been completed, would have been the largest cross-border merger since the British wireless provider Vodafone’s $183 billion acquisition of Mannesmann of Germany in 2000. | The transaction, if it had been completed, would have been the largest cross-border merger since the British wireless provider Vodafone’s $183 billion acquisition of Mannesmann of Germany in 2000. |
| A combination of Kraft Heinz and Unilever would have created an empire of hundreds of household names, with more than $82 billion in sales. | A combination of Kraft Heinz and Unilever would have created an empire of hundreds of household names, with more than $82 billion in sales. |
| The withdrawal came after news media reports over the weekend that Kraft Heinz was preparing to meet with some of Unilever’s biggest investors in hopes of winning their support. | The withdrawal came after news media reports over the weekend that Kraft Heinz was preparing to meet with some of Unilever’s biggest investors in hopes of winning their support. |
| Kraft Heinz was created two years ago in a deal driven by 3G Capital, the Brazilian investment firm that bought Heinz in 2013 along with Warren E. Buffett. |