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Shares of Unilever fell after the withdrawal of the proposal by Kraft Heinz

American food group Kraft Heinz (“Heinz Kraft”) has withdrawn its proposal to merge with the British-Dutch consumer goods company Unilever (“Unilever”).

12.Apr.17 5:30 AM
By Christina Orlina


Shares of Unilever fell after the withdrawal of the proposal by Kraft Heinz

The amount of the transaction, which could be one of the largest mergers in history, estimated at 143 billion dollars. On Monday, during the tendering, shares of Unilever fell by 8%.

On Friday, the company rejected the proposal, explaining that it represents neither financial nor strategic benefits for shareholders.

Analyst Jasper of Lawler (London Capital Group) is confident that the decision was influenced by politics: “British Ministers expressed their disapproval. The company Kraft and the UK has a long history — a few years ago it acquired Cadbury (“Cadbury”) and promised to keep jobs in the country, but he broke those promises soon after the transaction”.

On Sunday, the Financial Times newspaper reported that Prime Minister Theresa May, who has repeatedly criticized the deal of American company with a British confectionery maker Cadbury, has demanded a formal review of the proposal of Kraft Heinz.

On Monday the official representative of the Prime Minister of the country said that the government was irrelevant to the decision of Unilever to abandon the merger with Kraft Heinz.

The Kraft Heinz is one of the world's largest food manufacturers, was founded in March 2015 with the merger of companies Kraft Foods Group and Heinz.

The headquarters of Kraft Heinz are in American cities of Chicago (Illinois) and Pittsburgh (Pennsylvania). The company is among the largest producers of food products and beverages.

It is also one of the world's largest food companies.

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