Unilever explains Kraft Heinz rejection
Unilever has admitted that Kraft Heinz’s failed takeover $143bn takeover bid has been the catalyst for it to redouble efforts to deliver better returns, faster for shareholders.
Unilever explains Kraft Heinz rejection.
Speaking out about the deal for the first time since the American conglomerate revealed its hand a week ago, the business revealed why a deal never materialized. Graeme Pitkethly, Unilever’s finance director, is reported by the Financial Times to have told attendees at the Consumer Analyst Group of New York yesterday (24 February): It has certainly been a trigger for Unilever and we will not waste it. It showed us the challenge to unlock value quicker in the shorter term.”
He cited Unilever’s failure to clearly articulate its mid-term plans alongside the company’s sagging growth in emerging markets as to why it was vulnerable to a takeover bid. However, Pitkethly said the business was right to swiftly rebuff the advances from Kraft Heinz given the differences in strategies between the two. Unilever is a business that would generate higher returns “indefinitely” and “sustainably” over the long term, whereas Kraft Heinz’s prospects are predicated on “repeated portfolio change”, he added in reference to the American firm’s dealmaking.
Pitkethly did not share any information on a business review it announced earlier this week but indicated that the company would become more focused on driving costs down. “It’s clear we can go harder and deeper,” he said. The outcome of the review is expected in April.