Kraft Heinz approaches Unilever with merger offer
3G Capital and Warren Buffett's latest move in food has been to sound out the Ben & Jerry's and Knorr owner about a combination.
Less than three days was all it took for Kraft-Heinz's GBP112bn (US$139.1bn) takeover approach to Unilever to become public, be rejected and subsequently be taken off the table. The attempt is likely to have some significant and far-reaching consequences for Unilever. Here, just-food takes a look at the impact the episode could have on the Dove-to-Knorr manufacturer.
Warren Buffett has said Kraft Heinz has not prepared "a back-up deal" in the wake of Unilever rejecting the US group's proposed takeover offer.
Unilever rejected the GBP112bn (US$139.1bn) takeover approach from Kraft Heinz because the US group's proposed offer did not value the Knorr maker highly enough, the CFO of the UK-based consumer goods giant CFO has argued.
Unilever has declined to comment on a report suggesting the company is considering splitting in two, spinning off its food business – including brands like Knorr and Hellmann's – from its home and personal care units.
European consumer goods giant Unilever has announced it is launching a review of its operations in order to "accelerate" the value it can give to its shareholders.
Kraft Heinz has pulled its GBP112bn (US$139.1bn) takeover bid for consumer goods giant Unilever.
Kraft Heinz's takeover bid for Unilever came as something of a shock today – not least because of the seeming unlikely pairing of the 3G Capital-owned US group with the European food-to-personal care company. just-food asks whether the takeover offer should be taken at face value.
Kraft Heinz has indicated it is still working towards a merger with Unilever after revealing today (17 February) the European consumer goods giant had turned down an initial approach.
Kraft Heinz continued to grow its margins in 2016 and returned to positive organic top-line growth, even as it booked lower sales.
Unilever delivered sluggish sales but stronger-than-expected margins when it reported its full-year results today (26 January). The company's revenue was buffeted by issues like demonetisation in India and economic crisis in Brazil during the tail-end of 2016. While management believes such headwinds will lead to a slower start to 2017 - an outlook that hit Unilever's shares today - the group does expect things to pick up as the year progresses. just-food take a look at Unilever's strategy for growth this year.
Unilever has indicated it will focus on margin acceleration in the coming year as it delivered lower sales but higher earnings against a backdrop of "severe economic disruptions" in 2016.
Shares in Mondelez International jumped in after-hours trading in New York yesterday (14 December) after reports surfaced Kraft Heinz could be preparing a takeover attempt for the Oreo and Cadbury owner.
Shares in US food majors including Mondelez International and General Mills rose yesterday (8 November) after Brazilian reports suggested investment firm 3G Capital is raising US$8-10bn to fund more acquisitions.
Zero-based budgeting is essentially a cost-control mechanism. By re-setting each line of the budget at zero, it focuses attention on expenses and challenges existing costs. There are, however, contradictory views about whether the adoption of this method is supportive of revenue growth while its risks and limitations mean that it is not necessarily a good fit for everyone. Katy Askew reports.
Zero-based budgeting is not a new concept. It was developed around five decades ago by Peter Pyhrr, an account manager at semiconductor firm Texas Instruments. After being taken up by US president Jimmy Carter in the 1970s, the method fell into obscurity. Recent years have seen it experience a revival in the food industry. In this series of articles, just-food examines zero-based budgeting and asks if it is a miracle diet for packaged food companies seeking a shapelier margin profile.
This morning's (25 March) news HJ Heinz and Kraft Foods Group have inked a definitive merger agreement sent shockwaves through the US food sector. But, when the dust settles, what are we likely to see from the enlarged Kraft Heinz Co.? Katy Askew investigates.
Heinz stunned the global food industry with news it had agreed to a US$28bn takeover offer from Warren Buffett's Berkshire Hathaway fund and private-equity firm 3G Capital - purported to be the largest-ever deal in the sector. Dean Best looks at what could lie ahead for the US food giant.
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