You are here

Kraft Heinz to pursue merger despite Unilever rejection

Friday, February 17, 2017 - 21:41

u0001.jpg
US food company Kraft Heinz Co has proposed a merger with US$125 billion Unilever in what would be one of the biggest deals ever, but the Anglo-Dutch consumer goods company has declined, Kraft said on Friday.

[LONDON] US food company Kraft Heinz Co has proposed a merger with US$125 billion Unilever in what would be one of the biggest deals ever, but the Anglo-Dutch consumer goods company has declined, Kraft said on Friday.

A deal with Unilever, which had a market value of US$125 billion before its shares spiked, would add Hellmann's mayonnaise, Ben & Jerry's ice cream and Knorr soups to a portfolio that includes Heinz ketchup and Kraft Macaroni and Cheese.

"Kraft confirms that it has 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," Kraft said in a statement.

"While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction."

sentifi.com

Market voices on:

Unilever spokeswomen did not immediately reply to requests for comment.

Kraft said a further statement would be made as appropriate.

Unilever shares jumped as much as 14 per cent to a record high. They were up 11 per cent at £37.37 at 1220 GMT.

This is below the £40-per-share price mentioned by the FT Alphaville blog, which first reported rumours of the approach.

Kraft Heinz, controlled by private equity firm 3G Capital, has been widely expected to do a deal this year, given earlier reports that 3G's Brazilian principals were raising a new fund.

REUTERS

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom