Unilever and Kraft Heinz have announced that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies.

Previously, Unilever issued a statement noting the bid by Kraft Heinz that it had made a potential offer for all of the shares of Unilever.

The proposal, said Unilever, represents a premium of 18% to Unilevers share price as at the close of business on 16 February 2017. This, the company believed, fundamentally undervalued Unilever. Unilever rejected the proposal as it says it sees no merit, either financial or strategic, for Unilevers shareholders. Unilever does not see the basis for any further discussions.

Unilever recommended that shareholders take no action. Further announcements will be made as appropriate.

The proposal received was that Unilever common shareholders would receive $50.00 per share in a mix of $30.23 per share in cash payable in U.S. dollars and 0.222 new enlarged entity shares per existing Unilever share, which valued Unilever at a total equity value of approximately $143 billion.

As stated in the recent announcement by Kraft Heinz, in accordance with Rule 2.6(a) of the Code, by not later than 5.00 pm on 17 March 2017, Kraft Heinz must either announce a firm intention to make an offer for Unilever under Rule 2.7 of the Code or announce that it does not intend to make an offer for Unilever, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.As required by the Code,

Unilever confirmed that this announcement is not being made with the agreement of Kraft Heinz.

There can be no certainty that any offer will be made nor as to the terms on which any such offer might be made, Unilever concluded.