Two of the biggest food retailers in the world, Heinz and Kraft, are now merging to become a super company backed by Warren Buffett’s Berkshire Hathaway Inc. and investment firm 3G Capital.
These companies sell much more than ketchup and mayonnaise, as they also sell soups, pasta, beans, salad dressings and more. Kraft owns Maxwell House, Oscar Mayer, Philadelphia, Lunchables and Kool-Aid among others, while Heinz owns Ore-Ida potatoes and other brands.
This merger will make their joined company the third-largest food and beverage company in North America and the fifth largest in the world. Combined, they will make about $28 billion in revenue.
“I am delighted to play a part in bringing these two winning companies and their iconic brands together,” Buffett said in a statement, New York Times reports. “I’m excited by the opportunities for what this new combined organization will achieve. This is my kind of transaction, uniting two world-class organizations and delivering shareholder value.”
On Wednesday morning, Kraft’s shares increased by 35 percent, Bloomberg reports.
The company has been struggling with the preference of organic ingredients taking precedence and their recall of their macaroni and cheese earlier this month didn’t help.
image courtesy of B. Ach/INFevents.com
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