A major price tag, but for the company being acquired it just might not be enough.
U.S.-based Kraft Heinz offered an 18 percent premium for UK-based Unilever this morning, in a deal that is valued at $143-billion U.S.
Unilever rejected the proposal as not in the interest of their shareholders.
It is the latest example of companies looking for growth by acquiring their competitors.
For the consumer goods industry, the Wall Street Journal illustrated this morning what has been year-over-year struggle to deliver organic sales growth for brands like Unilever, Kraft Heinz, and also Proctor and Gamble and Nestle.
Unilever is the world’s second largest consumer goods firm by sales following Proctor and Gamble.
But both face the similar trend of fighting a saturated market and slowing sales, which means to deliver value to shareholders it’s all about trying to keep down costs.