FIRST AIRED: February 17, 2017

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00:00:01
>> It could be one of the biggest deals the world has ever seen, but Unilever says it's not going to happen. The European consumer products giant Friday turning down a $143 billion merger offer from Kraft Heinz, saying the deal makes no financial or strategic sense. But the market thinks differently, says Reuters Merger and Acquisition Reporter Lauren Hirsch.
00:00:25
>> Unilever is a great deal for Kraft Heinz because Unilever has both food products which go well with Kraft Heinz but it also has household personal care. So what Kraft Heinz could do is they basically get two for one. They get food to add to their food portfolio and then and a whole new platform to build out in household personal care.
00:00:44
>> If a deal does ever come together, it will combine some of the world's best known brands. Unilever owns Ben and Jerry's ice cream, Dove soap and Lipton tea while Kraft Heinz has this eponymous macaroni and cheese and ketchup products along with Oscar Mayer meats and tons of other food items.
00:01:02
Shares of Unilever and Kraft Heinz jumping to record highs. Analysts and investors say those gains may have as much to do with faith in Kraft Heinz two major backers, billionaires investor Warren Buffet and Brazilian investment firm 3G. Armed with Buffett's money, 3G was behind a number of transformative deals in the food and beverage industry, like Anheuser-Busch InBev's takeover of SAB Miller.
00:01:26
>> People are obsessed with 3G. 3G pretty much gets what it wants, so I think there's an assumption that if 3G wants something, it'll figure out a way to get it done.>> But there are political risks. 3G is known for cutting costs. If it does get a merger and then decides to cut American jobs or shift production to Europe, then that could spark a reaction from the America First Trump White House.
00:01:51
On the other side of the Atlantic, Britains are not so keen on seeing Unilever, another one of their crown jewels, taken over be a foreigner. And if the proposed marriage means closed factories and job cuts, it will face backlash there too.