We all love product samples like Bagel Bites, Cool Whip, Kool-Aid, Lunchables, Suave, Vaseline, and, Snuggle. They’re owned by two separate entities; The Kraft Heinz Company and Unilever. Why are we talking about the companies that own the items we enjoy? Is it because Kraft Recipes has a huge database of over 150+ coupons available for print out? No, but you can still enjoy the discounts (Click here!). The reason why we’re going to look into the aforementioned parent companies that produce our favorite, everyday items is because they might be joining forces to become one of the largest consumer goods conglomerates next to Procter & Gamble or Nestlé.
Before we go into the details of this Kraft Heinz initiated proposal, learning about the recent financial moves that lead the company here is pretty interesting. Going back to 2012, Kraft possessed a profitable grocery-focused roster which included Power Brands like Oreo, Nabisco, Cadbury, and Ritz and was looking to break apart two sections of their companies at the best interest of their shareholders for larger financial growth. This had created the independently run Mondelez International snack company. After Mondelez had flown out of the proverbial bird’s nest, Kraft then began to hone its attention to the North American grocery business full-time. This caught the attention of investment firms 3G Capital and Bullish investor Warren Buffett who together proposed the merger of H.J Heinz Co. and the Kraft Foods Group. Shareholders of Heinz attained the majority of the stock deal with 51% stake hold with Kraft retaining the remaining. Once this deal had come to completion in July of 2015, the newly formed Kraft Heinz company attempted to reacquire it’s old buddy Mondelez International, who rejected their offer in December of 2016.
Now in February of 2017, we’re approaching on what might be the largest US purchase of a foreign company. The Kraft Heinz Company has proposed an incredible $143 billion merger with multinational consumer-goods giant Unilever. Respectfully, Unilever has turned down the offer, claiming the deal “fundamentally undervalues” the company. Kraft Heinz, undeterred from the rejection says it “look[s] forward to working to reach [an] agreement on the terms of a transaction.” but the outlook on whether or not another proposal will be made is unclear. Both companies have earned respective positions in Forbes Top Global 2000 Companies of 2016 with Unilever holding a market value of $137.2 Billion and Kraft Heinz being valued at $94.9 Billion.
While there are much more interesting tidbits to this potential purchase, it currently looks as if there won’t be any further talks on the deal from Unilever’s end; this might change, this might not. The Stock Market is one of the most complex gambling rings to ever be established and it’s wildly fascinating. Let us know what you think on our Facebook, Twitter, Instagram, and Pinterest!