Souper-sized Food Company To Be Formed

US food company, Heinz, is poised to merge with its compatriot Kraft Foods in a deal worth around $100bn (£68bn).

Brazilian private equity company 3G has joined up with renowned investor Warren Buffett to buy Kraft Foods for around $40bn, before bringing it together with HJ Heinz, which was previously  acquired by the same investment team around two years ago.  The deal means that lunch-time favourites such as Heinz Tomato Soup and Philadelphia cheese will be unified under the new Kraft Heinz Company.  Analysts expect the new entity to generate yearly sales of around $28bn.

Shares in the new company will be split at a rate of 51%/49% between current Heinz and Kraft shareholders, respectively.  Kraft shareholders are expected to receive a share of a $10bn cash pay-out as a result of the deal.

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Pauline Rigby

About Pauline Rigby

Pauline Rigby is Head of the Corporate and Restructuring team at Forbes Solicitors. Pauline’s blogs cover a wide range of corporate issues, specifically areas including company formation, banking, joint ventures and shareholder matters, contractual matters and equity fundraising or investing.
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