In a deal that will bring eight USD 1 bn brands and five brands worth USD 500m to USD 1 bn together, food manufacturer Heinz (Pittsburgh, Pennsylvania / USA; www.heinz.com) and snacks manufacturer Kraft Foods (Northfield, Illinois / USA; www.kraftfoodsgroup.com) in late March signed a definite merger agreement to form The Kraft Heinz Company (Pittsburgh, Pennsylvania / USA). The transaction still has to meet the approval of Kraft’s shareholders and the regulatory authorities and is expected to be wrapped up in H2 this year.

The new company will have revenues of about USD 28 bn, making it the third largest food and beverage group in North America and the fifth largest in the world. Under the terms of the agreement, Kraft shareholders will own a 49% stake, while Heinz shareholders will be in control of the majority 51% stake. Upon closing, Heinz chairman Alex Behring will become chairman of The Kraft Heinz Company, while Kraft chairman John Cargill will serve as vice chairman. Heinz CEO Bernardo Hees will be appointed the new company's chief executive.