A PYMNTS Company

US: Heinz, Kraft agree to merge, forming a new food giant

By  |  March 25, 2015

HJ Heinz, owned by Warren Buffett’s Berkshire Hathaway is to merge with Kraft Foods, creating a new giant in the food industry and paving the way for Heinz to return to the stock market, the two companies said Wednesday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Heinz is to buy 51% of Kraft in a deal brokered by Berkshire and the Brazilian-based private equity company 3G. Kraft shareholders will get a $10 billion special dividend ($16.50 a share) under the deal, the rumor of which helped propel Kraft’s shares 16% in after-hours trading Tuesday. The dividend alone equates to 27% of Kraft’s market value as of the close of Tuesday’s trading.

    “This is my kind of transaction, uniting two world-class organizations and delivering shareholder value,” Buffett said in the statement. “I’m excited by the opportunities for what this new combined organization will achieve.”

     

    Full Content: The New York Times

     

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.