Kraft Heinz has decided to no longer pursue a Unilever acquisition. It had tabled a bid of more than 130 billion euro late last week, but the parties did not come to an agreement.
Different corporate culture
Both companies revealed the news in a joint statement, saying they amicably decided to halt talks. Kraft Heinz added it respected Unilever's culture, strategy and leadership, which may be a significant indication that their different corporate identities may have been the reason talks were halted.
Apparently Unilever CEO Paul Polman convinced his board that an acquisition would be a bad idea. He has put Unilever on the path of sustainable entrepreneurial spirit and a long-term vision, a strategy completely opposite to Kraft Heinz' approach.
This opposition meant that a friendly acquisition was no longer in the cards and that meant the end of the talks. One of Kraft Heinz' major shareholders, billionaire Warren Buffett, said he was not a fan of hostile take-overs.