Kraft Heinz in shock $143 billion bid for Unilever

London-listed consumer goods giant Unilever held talks with US behemoth Kraft Heinz over a possible mega-merger.

Kraft confirmed that it approached Unilever about a deal, but the Anglo-Dutch group rejected the initial proposal.

A deal would bring together Unilever's brands including Marmite and Ben & Jerry’s ice cream with Kraft’s Heinz baked beans and tomato ketchup.

“Kraft confirms that it has made a comprehensive proposal to Unilever about combining the two groups to create a leading consumer goods company with a mission of long-term growth and sustainable living,” the company said in a statement.

“While Unilever has declined the proposal, we look forward to working to reach agreement on the terms of a transaction.”

It added that there can be no certainty of a deal being agreed.

Unilever revealed that the offer was a mix of cash and shares, valuing it at $143 billion (£115 billion).

It said it "sees no merit, either financial or strategic, for Unilever's shareholders", adding: "Unilever does not see the basis for any further discussions."

Shares in Unilever jumped 15% to 3836p, valuing it at £116 billion – slightly more than Kraft’s value.

Any deal is likely to come under intense scrutiny from competition watchdogs.