The proposed deal marks the biggest ever takeover bid of a British company.
The Financial Times has reported, without citing any sources, British Prime Minister Theresa May has asked top officials to review Kraft Heinz’s proposed takeover of Unilever Plc.
The U.S. food company’s surprise $143 billion offer was rejected by Unilever. However, if it were to go through, it would mark the biggest ever acquisition of a UK-based company.
As per the Financial Times, May has ordered her officials to probe the impact of the proposed deal on the British economy whether it merits an intervention from her government.
When asked to respond to requests for comments, May’s office declined comment.
The Financial Times reported that May’s team has held talks with both Kraft Heinz and Unilever in order to gauge the implications of the deal vis-à-vis British jobs, its operations in the country, the location of its headquarters, as well as its research and development.
Significantly, a more detailed report will be submitted by Alex Chisholm, a top official in the Department for Business, Energy and Industrial Strategy, who will seek assurances from Kraft Heinz on its strategy vis-à-vis the deal.
Incidentally, May had come down hard on Kraft’s 2010 takeover of Cadbury, a British chocolate manufacturer, after which it reneged on its earlier promise to keep a factory in southwest England open.
May has made it clear that although the British government should not necessarily intervene in every takeover of British companies, it should however be able to step in and defend important sectors of its industry.
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