Kraft Heinz withdraws Unilever bid

US FOOD giant Kraft Heinz has withdrawn a £115billion bid for a mega-merger with Unilever, the firms have said.

In a joint statement the Heinz Tomato Ketchup and Philadelphia cheese manufacturer said it had agreed not to proceed with the offer it made on Friday for the Anglo-Dutch Marmite and PG Tips maker.

Unilever had already snubbed the offer, which represented an 18 per cent premium on its closing share price of $50 per share (£40.26) on February 16, saying it “fundamentally undervalues” the firm.

The joint statement read: “Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies. Unilever and Kraft Heinz hold each other in high regard. Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.”

Unilever, which saw its London stock value rocket 12 per cent on the news, had demanded its shareholders take no action after Kraft suggested a merger. The Pot Noodle maker said it saw “no merit, either financial or strategic, for Unilever’s shareholders”.