Kraft announces merger with Heinz

(AGI) New York, Mar 25 - Kraft has announced that it is tomerge with Heinz to become the third largest food giant inNorth America. The new group will be controlled by Brazilianprivate equity company 3G Capital and Warren Buffet'smultinational holding company Berkshire Hathaway. Kraft hasbeen valued at 36 billion dollars. Two years ago, 3G Capitaland Berkshire Hathaway bought food giant Heinz for 23 billiondollars. Kraft shareholders will own 49 percent of the newgroup and Heinz shareholders 51 percent. Kraft shareholderswill also receive a special cash dividend of 16.50 dollars pershare,

(AGI) New York, Mar 25 - Kraft has announced that it is tomerge with Heinz to become the third largest food giant inNorth America. The new group will be controlled by Brazilianprivate equity company 3G Capital and Warren Buffet'smultinational holding company Berkshire Hathaway. Kraft hasbeen valued at 36 billion dollars. Two years ago, 3G Capitaland Berkshire Hathaway bought food giant Heinz for 23 billiondollars. Kraft shareholders will own 49 percent of the newgroup and Heinz shareholders 51 percent. Kraft shareholderswill also receive a special cash dividend of 16.50 dollars pershare, funded by 3G Capital and Berkshire Capital. 3G Capitaland Berkshire Hathaway will own 51 percent of the new enlargedcompany, Kraft Heinz. Kraft shares soared 26 percent after thedeal was announced. Heinz CEO Bernardo Hees will head the newcompany. Alex Behring, chairman of Heinz and managing partnerof 3G Capital, will be president of the new group, and KraftCEO John Cahill will be vice-chairman. Turnover is estimated at26 billion dollars. The merger should bring a saving of 1.5billion dollars a year until the end of 2017. The new groupwill control eight brands worth a billion dollars each and fivebrands estimated at between one billion and 500 milliondollars. 3G Capital has offices in New York and Rio de Janeiroand holds controlling shares in brewing giant Anheuser-BuschInBev from a merger of the two companies in 2008. It also holdsmajority shares in Lajos Americanas, South America's leadingonline retailer, and in America Latina Logistica, the largestrail and logistics company in the area. 3G Capital also owns 51percent of Restaurant Brands International, the former Canadianrestaurant chain Tim Hortons, which it acquired for 12.5billion dollars in 2014. Additionally, the firm bought BurgerKing in 2010 for 3.8 billion dollars.. .