Kraft Foods to merge with Heinz creating world’s fifth-largest food group
US food giant Heinz is set to merge with Kraft Foods Group to create the fifth-largest food and beverage company in the world.
The new company, which is called the Kraft Heinz Company, has been formed following negotiations between Heinz’s owners, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett’s Berkshire Hathaway.
Current Heinz shareholders will own 51% of the combined company with Kraft shareholders owning a 49% stake. The combined company’s brands will include Kraft, Heinz, Cadbury’s and HP Sauce.
Warren Buffett, Berkshire Hathaway chief executive, said: “I am delighted to play a part in bringing these two winning companies and their iconic brands together.
“This is my kind of transaction, uniting two world-class organisations and delivering shareholder value. I’m excited by the opportunities for what this new combined organisation will achieve.”
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.”