Technology

Unilever Rejects Takeover Bid from Kraft Heinz

Apparently, famous food giant Kraft Heinz was interested in making a huge acquisition, but unfortunately for the company things did not turn out as it expected. So, a takeover bid from Kraft Heinz was rejected by another giant, Unilever.

Unilever stated that it rejected the takeover bid from Kraft Heinz because it saw absolutely no reason to engage in a conversation about the deal, which would have absolutely no financial or strategic merit. “Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever’s shareholders. Unilever does not see the basis for any further discussions,” an official statement indicated.

Well, if Unilever seems to be quite decided in rejecting the offer and claimed that the $50 per share deal offered by Kraft Heinz was undervalued, the bidder seems to be determined to push for a deal.

So, Kraft Heinz stated that it is still looking for a way to reach an agreement with Unilever on the terms of a transaction. This could mean that Kraft Heinz might be willing to go for a higher bid. An interesting thing to mention is that because of the offer, Unilever’s shares actually jumped by 14%, which set a record high.

If the takeover will ever take place, it will actually be the third-biggest takeover in history. Kraft Heinz was also formed by the merger of two giants, Kraft Foods and H. J. Heinz. The company is said to have a lot to win from a potential merger with Unilever, given the latter’s dominance on the market and potential of growth in emerging markets. Furthermore, Unilever has more than 400 brands.

Previously, Kraft Heinz was said to be interested in the acquisition of Mondelez International, but it seems that the interest did not turn out to be materialized. On the other hand, Mondelez was interested in taking over Hershey, but this deal also failed. Without a doubt, a series of purchases could happen in the food sector, but a merger between giants Unilever and Kraft Heinz would surely be something unexpected. It is yet to see if a deal will finally be reached between the two companies.

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John Colston is currently the leader and coordinator of our team of writers. He lives in Colorado and is collaborating with Ironclad Integrity Unlimited Ltd since 2006.John is a passionate independent journalist with a lot of experience in team building and human resources management.If you have any questions, suggestions or editorial complaints about DailyGossip.org, contact John at John.Colston@dailygossip.org

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