Dutch giant Unilever
has rejected Kraft Heinz's $143-billion merger
bid on Friday, which would have created one of the largest consumer goods company in the world.
Despite being turned down, the US company would continue working towards a deal to combine both groups, it said in a statement filed with the London
confirms that it has made a comprehensive proposal to Unilever
about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living," it said.
has declined the proposal, we look forward to working to reach agreement on the terms of a transaction," Kraft Heinz
said, adding, however, there was "no certainty" that there would be a further proposal.
appears to be firm on the rejection.
An offer by giant US food and beverage company Kraft Heinz
to merge with Unilever
was snubbed because it "fundamentally undervalues" its Dutch rival, Unilever
said on Friday.
The Rotterdam-based group said the Kraft offer valued Unilever
at around $143 billion, representing an 18 per cent premium over the share price at the close on Thursday.
"This fundamentally undervalues Unilever," it said in a statement, adding, it had "no merit, either financial or strategic, for Unilever's shareholders. Unilever
does not see the basis for any further discussions."
But investors still massively bought into Unilever
shares, which are quoted in London, pushing them over 12 per cent higher.
is the fifth-biggest food and beverage company in the world and the third-biggest in North America. It this week reported sales of $6.86 billion for the fourth quarter ending December 31.
Unilever, which had sales of 52.7 billion euros ($56.1 billion) in 2016, owns more than 400 brands including Lipton, Knorr, Dove and Omo. Its strategic focus is on sustainable growth which it calls "the only acceptable model for our business".