A special meeting for shareholders of Kraft Foods Group, Inc. will be held on July 1 in Chicago to vote on the proposed merger of the company with the H.J. Heinz Company.
The two companies announced the merger deal in March. If completed, the combined company would become 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. A majority of Kraft shareholders must vote in favor of the merger for the deal to proceed.
The combination of these brands will create a global powerhouse—the fifth largest food and beverage company in the world—that joins iconic brands including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia. According to the companies, together they will have eight $1+ billion brands and five brands between $500 million and $1 billion.
The new company, which projects revenues of approximately $28 billion, will be co-headquartered out of Pittsburgh and Chicago, the companies’ respective homes.