US food giant Kraft Heinz has withdrawn a STG115 billion ($A187 billion) bid for a mega-merger with Unilever, the firms say.
In a joint statement on Sunday the Heinz Tomato Ketchup and Philadelphia cheese manufacturer said it had agreed not to proceed with the offer it made on Friday for the Anglo-Dutch Marmite and PG Tips maker.
Unilever had already snubbed the offer, which represented an 18 per cent premium on its closing share price of $US50 per share on February 16, saying it "fundamentally undervalues" the firm.
The joint statement read: "Unilever and Kraft Heinz hereby announce that Kraft Heinz has amicably agreed to withdraw its proposal for a combination of the two companies.
"Unilever and Kraft Heinz hold each other in high regard.
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"Kraft Heinz has the utmost respect for the culture, strategy and leadership of Unilever."
