Feb 21, 2017

How Unilever fought off Kraft Heinz, Warren Buffett and 3G

The proposition was one to be taken seriously, given that 50 per cent of Kraft Heinz was owned by two formidable dealmakers, Warren Buffett and 3G Capital, the secretive private equity group that has been upending consumer industries from beer to fast food. A combined 13,000 workers have been cut since Mr Buffett and 3G purchased HJ Heinz and merged it with Kraft Foods in 2015. Kraft Heinz had expected its first offer to be rejected but was caught off guard by the harsh language Unilever used. Back in London on Saturday, as Mr Polman tapped into his network of contacts, he was informed that Finsbury was working with Kraft Heinz on PR. Within seconds, Mr Polman blasted off an email to Sir Martin Sorrell, the founder and chief executive of WPP, the advertising company that counts Unilever as one of its most important clients. On Sunday morning in London, people close to Kraft Heinz said the US company was determined to make a series of concessions, including taking on Unilever's name after the merger as well as offering guarantees to maintain R&D investments and headquarters in the Netherlands, UK and the US. But Mr Behring, Mr Lemann and Mr Buffett received a letter from Mr Polman outlining his hostility to a deal.

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