Kraft Heinz proposes $143B merger with Unilever

PITTSBURGH — Kraft Heinz proposed a $143 billion merger with Unilever, but Unilever rejected the bid, stating it undervalues its company.

"Unilever rejected the proposal as it sees no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions,” the company said in a statement.

Although Unilever rejected the initial proposal, this may not be Kraft Heinz’s only merger proposal.

“Kraft Heinz confirms that it has made a comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living,” it said in a statement. “While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction. There can be no certainty that any further formal proposal will be made to the board of Unilever or that an offer will be made at all or as to the terms of any transaction.”

If a deal is struck, it would be one of the largest mergers ever, merging many large brands, including Kraft Macaroni and Cheese, Heinz ketchup, Ben & Jerry’s ice cream, Hellman’s mayonnaise and Knorr soups, as well as many others. Kraft Heinz is backed by legendary investor Warren Buffet and 3G Capital.