Kraft Heinz has made their intention clear as they move closer to entering the skin care market. This was confirmed this past friday following a bid from the company to purchase Unilever and combine the two companies.
However, the offer was rebuffed, as Unilever considered it as an undervaluation their extensive portfolio of skin care brands. Their governing board also told their shareholders through their website not to answer any phone calls or take any action at this time.
Mike Mullen, a spokesman for Kraft Heinz, stated that the offer carried the intent of creating “a leading consumer goods company with a mission of long-term growth and sustainable living.” He also added that “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.”
The skin care giant confirmed that the offer would provide an 18 percent premium to that of the share price at the close of business on February 16th. This would give Unilever a company evaluation of $143 billion.
With that in mind, Unilever also released a statement in response to the offer.
“This fundamentally undervalues Unilever. 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. Unilever PLC and Unilever N.V. recommend that shareholders take no action.”
Kraft Heinz would rescind the offer only 48 hours after being presented. Many factors have were cited, one such being the difference of business models between both competitors. A statement followed from a Kraft spokesman, citing that “it was best to step away early so both companies can focus on their own independent plans to generate value.”