the north face usa Kraft and Heinz announce merger

the north face nuptse gilet Kraft and Heinz announce merger

Heinz Co, owned by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc, to form North America’s third largest food and beverage company.

Kraft’s shares rose 34% to $82.50 in premarket trading on Wednesday.

Berkshire Hathaway will own more than 320 million shares in the combined company, which will have about 1.22 billion shares outstanding, Buffett told CNBC.

“We will be in the stock forever,” he said.

Brazilian private equity firm 3G Capital and Berkshire Hathaway acquired Heinz for $23.2 billion in 2013.

The Kraft deal is unlikely to face antitrust hurdles as there is little overlap in products, analysts said.

Kraft’s products include cheese, processed meats,
the north face usa Kraft and Heinz announce merger
packaged meals and Maxwell House coffee, while Heinz makes ketchup, sauces and frozen foods.

The combined publicly traded company, expected to save about $1.5 billion in annual costs by the end of 2017, will have eight brands worth over $1 billion each, the companies said.

Kraft shareholders will get one share in the combined company, to be called the Kraft Heinz Co, and a special cash dividend of $16.50 for every share held.
the north face usa Kraft and Heinz announce merger