Friday, 24 February 2017

Takeover Rejection

Unilever, which owns some of the UK's most famous household brands, has strongly rejected a takeover bid from US food giant Kraft Heinz. The maker of Marmite and PG Tips said it saw "no merit, either financial or strategic" in Kraft's offer, worth about $143bn (£115bn). But Kraft, which makes Heinz ketchup, indicated it would continue working on a deal for the Anglo-Dutch firm.  The deal would be one of the biggest in corporate history. It would combine Unilever's dozens of household names, which also includes Ben & Jerry's ice cream, Dove soap, and Hellmann's mayonnaise, with Kraft's own wide range, such as Philadelphia cheese and Heinz baked beans. Shares in both companies rose sharply on Friday, as investors welcomed the possible creation of such a powerful firm. But a deal could also raise concerns about job cuts and would probably be examined by competition regulators, analysts said.