Creating a buzz throughout the global food industry, the H.J. Heinz Company and Kraft Foods Group, Inc. announced a merger deal Wednesday to create The Kraft Heinz Company financed in part by American business mogul Warren Buffet, becoming the third largest food and beverage company in North America.
Under the terms of the agreement, Heinz shareholders will own a 51 percent stake in the new company while Kraft shareholders will own 49 percent. Kraft shareholders will receive stoke in the combined company and a special cash dividend of $16.50 per share funded by an equity contribution from 3G Capital and Buffet’s Berkshire Hathaway.