Kraft makes U-turn on Unilever bid
US group’s shares fall as it did not factor in the resistance it received
London — Kraft Heinz’s rapid retreat from its surprise $143bn bid for Unilever in the face of stiff resistance from the company and politicians sent shares in the Anglo-Dutch group 8% lower on Monday. Kraft, which is backed by Warren Buffett and the private equity firm 3G, wanted to buy Unilever as part of its strategy to become a global consumer goods giant by buying competitors and cutting costs and jobs to drive profits. However, the US food group had not factored in the resistance it received from Unilever CE Paul Polman, who dismissed its offer as having no financial or strategic merit and requiring no further discussion. Britain’s response was also a concern after Prime Minister Theresa May signalled she would take a more proactive approach to foreign takeovers. May, who has previously singled out Kraft’s 2010 acquisition of another British household name, Cadbury, as an example of a deal that should have been blocked, has indicated her government would want to examine the dea...
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