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Kraft Heinz and Unilever held preliminary discussions about merging Unilever’s food business with Kraft Heinz’s condiments division. The talks have since ended without an agreement. The discussions reflect the shared pressures both companies face i.e., declining demand from increasingly health-conscious consumers who are shifting away from packaged and processed foods. Unilever’s new CEO has not ruled out selling the entire food division. Analysts value a standalone Unilever food business at roughly $36–37bn. Both Kraft Heinz and Unilever are racing to reorient their portfolios as consumer tastes continue to evolve away from legacy food brands.
Kraft Heinz dollar bonds traded with a negative bias. It’s 5% 2035s were down 0.6 points to 97.5, yielding 5.34%.
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