Investing.com – Kraft Heinz Co (NASDAQ:KHC) announced on Friday a proposed $143 billion merger with Anglo Dutch company, Unilever (LON:ULVR), but the offer was swiftly rejected.
The merger would combine Kraft’s strength in the United States with Unilever dominance in the Europe and Asia during a period in which both companies continue to suffer from a slow-down in growth in the global packaged food industry.
Despite the challenging period in the industry, Kraft posted fourth-quarter results, released Thursday that beat analyst estimates, as decrease in costs helped boost top-lien growth.
Although Kraft’s performance in Europe came under scrutiny, after the company revealed less than impressive performance in the region: Kraft’s revenue dropped sharply by 13.3% year-on-year to $600 million.
While Unilever faces problems of its own, as lower demand from emerging markets, a key target market, contributing nearly 60% of the company’s turnover, weighed on performance over the last year.
Kraft Heinz shares closed at $96.95 up nearly 11%, while Unilever shares surged to record highs, and closed at 3797p, up more than 13%.