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>> Separating as friends. Kraft withdrawing its proposal for a $143 billion merger with larger rival Unilever on Sunday. The announcement ending what could have been the third biggest takeover in history. It's likely to come as a relief for the British Prime Minister. According to Reuters deputy UK bureau chief, Kate Holton.
>> The way that Kraft works is it buys companies and it takes out costs which often means jobs in order to grow profits. So, there wouldn't really have been much upside to the government over these deals.>> A joint statement saying Kraft has quote, the utmost respect for the culture, strategy and leadership of Unilever.
According to Reuters sources, Kraft was forced to pull out after the premature public disclosure of its surprise bid.>> We believe the two companies have been in talks for around about a week to 10 days. They were forced to put a statement out on Friday because the share price in Unilever had been increasing on rumors about this deal.
So they confirmed the deal on Friday and by Sunday evening, the deal had been pulled. So, it's quite strange in corporate deal making for it to happen so quickly. What we understand is that, perhaps Kraft was surprised by the strength of resistance that they received from Unilever. Unilever had said that there was no merit to either, strategically or financially in this deal and there was no point in having any further talks.
We also think possibly the UK government had indicated that it would also want to look at this deal. And in a world of Donald Trump, maybe major deals aren't as easy as they used to be anymore.>> Analysts and investors now questioning whether Kraft might pursue another big buy as a backup plan.