Unilever rejects Kraft Heinz on merger

Kraft Heinz made a $143 billion offer for Unilever in what would be the largest-ever takeover in the food or beverage industry, opening a campaign to create a consumer-goods giant with household names from Dove soap to Heinz ketchup.

Unilever said Friday it rejected the $50 a share proposal, comprising about two-thirds in cash and a third in new stock. The approach 'fundamentally undervalues” the company, Unilever officials said.

The company added it sees no basis for further discussions.

Kraft Heinz, which has facilities in Iowa, said earlier it would seek to gain an agreement on the terms of a transaction.

The bid underscores consolidation among consumer-goods companies searching for profit-growth strategies as conditions become tougher across the globe.

Kraft Heinz itself was forged in 2015 in a $55 billion combination orchestrated by Warren Buffett's Berkshire Hathaway and Brazilian investment company 3G Capital, which had teamed up two years earlier on a buyout of H.J. Heinz.