Prime News Ghana

Unilever loses its top buyer

By Sam Edem
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Unilever last weekend witnessed an end to its historic takeover bid by Kraft Heinz.

The American food and beverages company turned down Unilever’s bid on Friday, claiming that the deal had "no merit, either financial or strategic".

Kraft, jointly controlled by 3G Capital and Warren Buffet’s Berkshire Hathaway $143bn (£115bn).

In a joint statement issued to the press, the firms said "Unilever and Kraft Heinz hold each other in high regard".

Shares in Unilever, which closed 13% higher on Friday, fell more than 8% in morning trading in London to £34.76.

Kraft's offer was at an 18% premium to Unilever's closing share price on Thursday, Unilever said. Kraft shares rose 11% on Wall Street on Friday.

George Salmon, a Hargreaves Lansdown analyst, said shelving the deal just one business day after it was announced came as a surprise.

"It was always going to be a difficult pitch to convince shareholders to relinquish their grip on Unilever, given the expectations for the company to keep churning out resilient growth in the years to come," he said.

The deal would have been one of the biggest in corporate history, combining dozens of household names.

Source: BBC