Krafts Heinz drop Unilever takeover Bid
Heinz Kraft abandoned its bid for Unilever, Anglo-Dutch rival.
Marmite maker refused to attempt a giant US food on Friday, saying he saw “no merit, either financial or strategic,” in Kraft’s offer, worth about $ 143bn $ (£ 115bn).
“, Unilever and Kraft Heinz held each other in high regard,” the companies said in a joint statement.
Shares in Unilever, up 13% on Friday, 7.3% in trading lunch in London to £ 35.18.
And Kraft’s offer was a premium of 18% to the closing price of shares of Unilever on Thursday. Kraft shares rose 11 percent on Wall Street on Friday.
He said George Salmon, an analyst with Hargreaves Lansdown, shelves and deal only one working day after announcing that it came as a surprise.
“It was always going to be on the pitch difficult to convince shareholders to give up their control of Unilever, given the expectations of the company to keep churning out the growth of flexibility in the coming years,” he said.
The deal was one of the largest in the company’s history, and the combination of dozens of household names.
Unilever owns Ben & Jerry’s ice cream, Dove soap and Hellmann mayonnaise, while Kraft cheese, Philadelphia group that includes Heinz baked beans.
“It seems that Kraft Heinz has underestimated the intrinsic value of Unilever and the challenge of obtaining control of the Dutch company, which would have opposed such a move raucous stakeholders,” said Martin Deboo, a Jefferies International analyst.
He said the BBC more than half of the company’s shares are listed entity in the Netherlands.
He said Michael Mullen, a spokesman for Kraft Heinz, gave the public interest at a very early stage.
“It was our intention to move forward on a friendly basis, but it was clear Unilever does not want to pursue the transaction. It is best to stay away early so both companies can focus on their own independent plans to generate value,” he said.
Reports have indicated that the prime minister Theresa May had asked the officials to discuss the deal before the dissolution of the union.
However, her spokesman said on Monday that the British government did not participate in Kraft’s decision to withdraw the offer.
The control of Cadbury by Kraft in 2010’s controversial enough to demand reforms to the rules governing how foreign companies buying British companies.
After promising a week to keep open Cadbury, near Bristol Somerdale factory, he fell Kraft said it would close the plant.
Group reviewed the seizure of laws and, in September 2011, strengthen the position of the target companies, and demanded more information from the bidding intentions providers after purchase, especially in areas such as job cuts.
In July last year, shortly after becoming prime minister, Ms. May and promised to have a “proper industrial strategy” that can be used to prevent acquisitions.