Kraft Heinz rebuffed over £143bn Unilever offer

News


17 Feb, 2017

Kraft Heinz rebuffed over £143bn Unilever offer

Unilever, the Anglo-Dutch consumer giant has rejected a £143bn plus merger offer by its US rival Kraft Heinz.

In what would be the biggest takeover of a British company ever, Unilever said that it had been offered a deal which would have seen its shareholders receiving $50 per share in a mix of $30.23 in cash and 0.22 shares in the merged business.

Unilever urged its shareholders to take no action and said that Kraft Heinz must either make a solid offer or walk away by 17 March under the UK takeover procedure.

The combination of said giants would create a company with €78.7bn (£67.4bn) in revenues and unite the world's biggest brands, creating an even greater, global giant in household goods with the rights to Heinz baked beans and Philadelphia cheese.

Unilever's shares surged by more than 11% following confirmation of the possible merger on Friday. During midday trading the firm’s shares were up 376.5p to £37.25, valuing Unilever at £112.7bn.

In a statement to the London Stock Exchange, Kraft Heinz said that it confirmed that it had "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, we look forward to working to reach agreement on the terms of a transaction."

Today's News - Tony Blair tells Brexit critics to 'rise up'