Kraft Heinz has agreed to withdraw its proposal for a $186 billion mergerwith larger rival Unilever, the companies said on Sunday.
Kraft had made a surprise offer for Unilever in a bid to build a global consumer goods behemoth, although it was flatly rejected on Friday by Unilever, the maker of Lipton tea and Dove soap.
Kraft withdrew its offer because it felt it was too difficult to negotiate a deal following the public disclosure of its bid so early following its approach to Unilever, according to people familiar with the matter who requested anonymity to discuss confidential deliberations.
Some key concerns raised during talks included potential UK government scrutiny as well as differences between the companies’ cultures and business models, one of the people said.
Kraft was forced to publicly disclose its offer to Unilever on Friday to comply with Britain’s takeover regulations, after rumors of its approach to Unilever circulated among stock traders.
Full Content: BBC News
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