Food giant Heinz set to buy Kraft

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Published: Wednesday 25th March 2015 by The News Editor

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Heinz is buying Kraft Foods Group, creating what the companies say will be the third-largest food company in North America.

The deal was engineered by Heinz’s owner, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett’s Berkshire Hathaway.

Kraft shareholders will receive stock in the combined company and a special cash dividend of approximately 10 billion dollars (£6.7 billion), or 16.50 dollars per share (£11).

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, Oscar Mayer and others.

Both companies’ boards have unanimously approved the deal, which is targeted to close in the second half of the year. It still requires approval from Kraft shareholders.

Published: Wednesday 25th March 2015 by The News Editor

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