On 17 February Kraft Heinz announces a US$ 143bn take-over bid for Unilever, only to be withdrawn two days later after strong pushback from the Unilever chief executive and Board. The potential benefits were questioned by Unilever shareholders, 70% of whom are long-term investors who have held their shares for over 7 years. The failed bid did raise concerns about the group’s structure and profitability. On 22 February Unilever announced it would conduct “a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders”, after which its share price recovered. Unilever’s profit margins are half those of Kraft Heinz, suggesting that the business could be run more efficiently. It may sell off businesses such as Lipton tea to fund a large acquisition in home and personal care, a domain that currently accounts for 57% of sales.
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