LONDON -- Kraft Heinz Co. dropped its $143-billion offer for rival Unilever PLC, just a little more than 48 hours after making an audacious bid to combine two of the world's biggest packaged-food companies.

In a brief statement Sunday, Kraft said it "has amicably agreed to withdraw its proposal."

A Kraft spokesman said the company's intention was to proceed on a friendly basis, and that its interest was made public at "an extremely early stage." After Unilever made clear it didn't want to pursue a tie-up, the spokesman said, "it was best to step away early so both companies can focus on their own independent plans to generate value."

The U-turn is a big victory for Unilever Chief Executive Paul Polman, who was digging in over the weekend to resist the unsolicited offer. The deal faced steep hurdles from the start -- first among them a determination by Unilever's board and management that the 18% premium Kraft offered to the company's value was inadequate.

Mr. Polman was ramping up a defense, telling board members and investors that Kraft's cost-cutting ethos could damage Unilever brands and highlighting its lack of experience in personal-care and household goods, according to people familiar with the matter.

(END) Dow Jones Newswires

February 19, 2017 13:58 ET (18:58 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
Unilever (LSE:ULVR)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Unilever Charts.
Unilever (LSE:ULVR)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Unilever Charts.