Unilever deal collapses under scrutiny from Downing Street

THE biggest takeover in British corporate history collapsed last night after Downing Street began examining the deal, The Daily Telegraph understands.

Kraft Heinz abandoned its £115 billion attempt to acquire Unilever after bosses feared they could not overcome political opposition.

The retreat came just hours after it emerged that Theresa May had ordered officials to scrutinise the proposed deal. Yesterday there were reports that the Prime Minister wanted to discover whether the deal had wider implications for the economy or for staff at Unilever.

The company – whose brands include Hellmann’s mayonnaise, Marmite and Persil – employs 7,500 people in the UK and 98 per cent of British households contain at least one Unilever product.

Sources said senior executives from 3G Capital, the private equity firm behind Kraft Heinz, and Unilever had telephone conversations with Whitehall officials over the weekend before announcing it was off.

Shortly before she became Prime Minister last year, Mrs May promised to do more to block predatory takeovers by foreign businesses when British jobs are at stake.

She also criticised Kraft’s 2010 takeover of Cadbury after it reneged on a pledge to keep jobs in Britain.

The firms issued a joint statement yesterday saying Kraft “has amicably agreed to withdraw its proposal”.