Kraft Heinz (NASDAQ:KHC) has withdrawn the $143 billion cash and stock offer for the food giant Unilever (NYSE:UN).
When Heinz announced the news that they were deciding to acquire the food giant Unilever, Heinz stocks went up roughly 10% and Unilever a staggering 15%; a record high stock price for both companies.
The reason the stock surged so much for both companies was because they believed that the deal would be done, but of course, this was not the reality. The stocks for both companies are slowly going down, but this is nothing compared to what will happen tomorrow at 9 am when the stock market opens.
Investors will rush to sell their stocks, and others will rush to short it. The prices for these stocks should stabilize to what they were worth before February 17, the day they announced the news of the merger.
We will not know for sure what the prices will be on Tuesday morning, but many believe that there will be a morning panic. However, both companies are doing great, for example, Heinz saw an operation income increase of 22% every year and Unilever has had a core operation profit increase of 12% in 2015.