Ketchup maker H J Heinz Company and Kraft Foods Group Inc will merge to create 'The Kraft Heinz Company', the fifth largest food and beverage (F&B) company in the world. Brazil's 3G and Warren Buffett's Berkshire Hathaway, which bought Heinz for USD 23 billion, will invest an additional USD 10 billion in 'The Kraft Heinz Company'.
"H J Heinz Company and Kraft Foods Group, Inc. today announced that they have entered into a definitive merger agreement to create 'The Kraft Heinz Company', forming the third largest food and beverage company in North America and the fifth largest in the world," Heinz said in a statement. Under the terms of the agreement, Kraft shareholders will own a 49 per cent stake in the combined company, and current Heinz shareholders will own 51 per cent on a fully diluted basis.Commenting on the merger, Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital said, "By bringing
together these two iconic companies through this transaction, we are creating a strong platform for both US and international growth." "Our combined brands and businesses mean increased scale and relevance both in the US and internationally," he added. Kraft Chairman and Chief Executive Officer John Cahill said: "This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft's iconic brands to international markets."
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