Heinz acquires Kraft Foods to create USD28b firm

(MENAFN) H. J. Heinz Co. announced acquiring Kraft Foods, a move which would create one of the largest food and beverage firms in the world, with revenue exceeding USD28 billion, Arab News reported.

The Kraft Heinz Co. will own Kraft, Heinz, Oscar Mayer, Ore-Ida and other brands. Eight of those brands have annual sales of USD1 billion and five others log sales between USD500 million and USD1 billion a year.

The merger, which combines century-old companies, was engineered by Warren Buffett's Berkshire Hathaway and Brazilian investment company 3G Capital, which will invest USD10 billion in the new firm.

"This is my kind of transaction. Uniting two world-class organizations and delivering shareholder value. I'm excited by the opportunities for what this new combined organization will achieve," Buffett said.