American food giant Kraft Heinz (NASDAQ:KHC) has withdrawn its offer for British household name Unilever (LON:ULVR) , after Unilever rejected an initial proposal by Kraft on Friday.
In a statement, the companies said: “Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies.”
“Unilever and Kraft Heinz hold each other in high regard. Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever.”
Shares in Unilever rose 13 percent after rejecting the offer on Friday, which represented an 18 percent premium on Unilever’s closing price. Their shares fell more than 8 percent in morning trading, currently trading down 6.76 percent at 3,539.00 (0933GMT).
The merger would have been one of the largest in history, combining the largest household names in both the US and UK markets. Unilever owns Ben & Jerry’s ice cream, Dove products, Hellmann’s and Marmite, whilst Kraft’s includes Philadelphia cheese and Heinz baked beans.
Kraft Heinz (NASDAQ:KHC) shares rose over 10 percent on the news, currently up 10.74 percent at 95.6 (0937GMT).