Feb 20, 2017 08:46 PM EST

Kraft Heinz Takes Back $143 Billion Bid To Acquire Unilever

Kraft Heinz Co. decided that it no longer needs to add Unilever to the list of companies and brands that it owns. The Warren Buffett-backed company was eyeing to acquire Unilever in the hopes that the addition will bring it size and scale.

While Kraft Heinz did make a bid to purchase Unilever to the tune of $143 billion, the company did not expect that the CEO of the company it wants to buy will scorn the offer, Reuters reported. Unilever Chief Executive Officer Paul Polman refused to even consider a discussion with Kraft Heinz about a potential transaction.

Polman reportedly does not see any financial or strategy benefit for Unilever shareholders if the company agreed to merge with Kraft Heinz. Apparently, Kraft Heinz did not expect that Unilever would refuse its multibillion-dollar offer, which some sees as pretty generous.

Instead of increasing its offer and pushing for a strategic discussion, Kraft Heinz decided to back away instead. Buffett has long decided against doing a hostile takeover of any company.

Business Insider reported that shareholders of Unilever did not take the news gently. The company's shares plummet after reports came out that it rejected Kraft Heinz's bid without even a strategic discussion. When the news that Kraft wants to buy Unilever broke out, Unilever's shares jumped.

Aside from the hostile reception from Unilever's management, Kraft Heinz was also worried about how the United Kingdom will react to its bid. The company informed government regulators about its plan. However, it was uncertain how they would react especially after Prime Minister Theresa May vowed to be stricter to foreign companies planning to acquire entities based in the United Kingdom.

Jobs & Hire previously reported that Kraft Heinz's financial results surpassed analyst expectations despite lagging sales.

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