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. It will be the third-largest food and beverage company in North America.
Under the terms of the $36 billion agreement, Heinz shareholders will own a 51 percent stake in the new company, while Kraft shareholders will own 49 percent. Kraft shareholders will receive stock 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.