Sector News

Warren Buffett: Kraft Heinz bid for Unilever was not a 'hostile offer'

February 28, 2017
Food & Drink

Billionaire investor Warren Buffett said Monday a misunderstanding may have led to Unilever’s rejection of Kraft Heinz’s merger bid.

In a wide-ranging interview on CNBC’s “Squawk Box,” Buffett said the bid for Unilever was not intended as a “hostile offer,” but “it may have been interpreted that way.”

“I can’t argue about that, but if people say ‘we don’t like the price,’ that’s usually a ‘maybe,” the Berkshire Hathaway chief said.

Berkshire Hathaway and 3G Capital Partners, a private equity firm, are the largest stakeholders in Kraft Heinz.

The latter’s CEO, Alexandre Behring, first approached Unilever with a merger bid and hadn’t been “thrown out,” Buffett said. Kraft Heinz followed through with a formal offer.

Kraft Heinz announced Feb. 17 it had presented Unilever with a $143 billion merger proposal, which Unilever promptly rejected.

“After that Friday, I got a call indicating that the offer was unwelcomed,” Buffett said. “It became very apparent that Unilever did not want this offer.”

By Fred Imbert

Source: CNBC

comments closed

Related News

May 15, 2022

Blurred lines: Vitafoods Europe 2022 review

Food & Drink

Upon FoodBev Media’s return from Vitafoods 2022 – which took place from 10-12 May in Geneva, Switzerland – the team reflects on the event’s aim to bring together international nutraceutical suppliers and experts from across the globe.

May 15, 2022

Crunch time: Mondelēz to dump chewing gum to take bigger bite of chocolate and biscuits markets

Food & Drink

Following a strategic review last year, Mondelēz International is planning to sell its developed chewing gum business, which includes brands Trident and Dentyne. This is in addition to offloading its Halls cough drop brand, as the food giant focuses on generating 90% of revenue in its chocolates and biscuits businesses, including baked snacks.

May 15, 2022

Givaudan strengthens natural preservation portfolio with nitrite alternative for processed meat

Food & Drink

Givaudan has unveiled NaNino+, a patent-pending combination of plant-based ingredients and natural flavorings that can replace nitrite in processed meat. Designed with natural ingredients, it provides a lasting multi-sensorial food experience with a good taste, color and freshness.