Unilever rejected Kraft’s bid, but Kraft is still trying to buy it – Los Angeles Times

Kraft Heinz Co. is trying to buy Unilever in a $143-billion deal that would join the U.S. maker of cheeses and lunch meats with the European producer of mayonnaise, teas and seasonings, creating a global powerhouse.

Unilever rejected the approach and called the price too low, but Kraft Heinz says it’s still interested in a deal. Shares of both companies surged to new highs as investors saw prospects for cost cutting.

A combination of Kraft Heinz, which sells Oscar Mayer meats, Jell-O pudding and Velveeta cheese, and Unilever, which owns brands including Hellmann’s, Lipton and Knorr, would rival Nestle as the world’s biggest packaged food-maker by sales.

That might not lead to big changes that customers would notice on the supermarket shelves. But it’s people’s changing tastes, shifting away from boxed and canned groceries in favor of items that seem fresher or healthier, that’s driving deal-making in the food industry.

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