The mega - merger between H.J. Heinz Company
and Kraft Foods Group
) was announced recently. Warren Buffett
) brought together H.J. Heinz Company and, Kraft Foods Group with participation from private equity firm 3G Capital Parteners.
The new company will be called Kraft Heinz Co.
Jorge Lemann of Brazilian investment firm 3G Capital has partnered with Warren Buffet at Heinz and now in the mega-deal with Kraft, they have together discovered new ways to run their packaged food business, a segment that was considered to have reached its termination date. Kraft will own 49% of the newly formed company and Heinz which is currently owned by Brazil's 3G Capital Partners and Buffett's Berkshire Hathaway Inc.
), will jointly own the rest of the 51% share. Mergers as huge as this one are not new these days. Consumers are highly cost sensitive and there is always a constant effort for cost cutting solutions amongst businesses. The chairman of Berkshire Hathaway, Warren Buffet said that this is his kind of deal transaction as it unites two world class organizations to deliver shareholder value. He proclaimed he was delighted to play a role in bringing the two companies together. Continue Reading »