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


HJ Heinz, owned by Warren Buffett’s Berkshire Hathaway [fortune-stock symbol=”BRK-A”], is to merge with Kraft Foods Group [fortune-stock symbol=”KRFT”], 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.

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.”
[fortune-brightcove videoid=4119235041001]

The new company will be called The…

View original post 198 more words


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s