Kraft Heinz Withdraws $143 Billion Bid For Unilever

Posted On: 2/20/2017

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TAGS: Kraft Heinz, Unilever, vending, consumer products news, Kraft-Unilever merger

NEW YORK CITY -- Kraft Heinz has called off its $143 billion cash and stock offer for Unilever Plc just two days after announcing its bid, which would have put some of the world's best-known names in consumer goods and vending under one roof. On Sunday, Kraft Heinz's board, on which Warren E. Buffett and the Brazilian billionaire Jorge Paulo Lemann sit, decided to withdraw its offer for the consumer products giant.

Kraft's proposed merger with Unilever would have created a global consumer goods titan. Unilever, a British-Dutch multinational company co-headquartered in Rotterdam and London, owns more than 400 brands in the food, beverage, health and cleaning segments. Its top U.S. food brands include Knorr, Hellmann's and Lipton. It also owns such leading ice cream brands as Ben & Jerry's, Breyers and Klondike, among others. It acquired Breyers from Kraft in 1993.

Kraft reportedly withdrew its offer because it felt it was too difficult to negotiate a deal following the public disclosure of its bid so soon after its approach to Unilever. Under UK takeover rules, Kraft's public withdrawal of its offer disqualifies it from reviving buyout talks with Unilever for six months.