An offer by giant US food and beverage company Kraft Heinz to merge with Unilever was snubbed because it "fundamentally undervalues" its Dutch rival, Unilever said Friday. 

The Rotterdam-based group said the Kraft offer represented an 18% premium over the share price at close on Thursday. "This fundamentally undervalues Unilever," it said in a statement, adding it had "no merit, either financial or strategic, for Unilever's shareholders. Unilever does not see the basis for any further discussions."