Kraft and Heinz merge to create food giant

Kraft Foods, parent company of Mondelez, has merged with H J Heinz, resulting in what has been called the fifth-largest food and drink company in the world.

The food giants were merged by Heinz’s owners, a Brazilian investment firm called 3G Capital, and billionaire investor Warren E. Buffett’s Berkshire Hathaway.

Current Heinz shareholders will own 51% of the combined company, with Kraft shareholders owning a 49% stake.

The new company has stated it expects revenues of $28bn (£18.78bn) from the range of brands now owned by the company.

Kraft took over chocolate firm Cadbury in 2010, but in 2012 spun it off under its global snacks arm Mondelez which includes brands like Oreo.

Alex Behring, chairman of Heinz and the managing partner at 3G Capital, said: “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both US and international growth. Our combined brands and businesses mean increased scale and relevance both in the US and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.” 

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