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Stock Market & Financial Investment News

News For BRK.A;HNZ;BRK.B From The Last 14 Days
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March 30, 2015
07:39 EDTBRK.AKraft Foods upgraded to Buy from Hold at Canaccord
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07:19 EDTBRK.AMondelez considering selling Philadelphia brand in Europe, Sunday Times says
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March 26, 2015
07:53 EDTBRK.AHeinz likely to close Kraft Illinois headquarters, NY Post says
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March 25, 2015
12:52 EDTBRK.AOn The Fly: Midday Wrap
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12:22 EDTBRK.AFly Check: Kraft megadeal follows Goldman adding stock to Conviction List
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10:43 EDTBRK.AFood makers advance after Kraft, Heinz announce merger
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08:22 EDTBRK.ABuffett says has looked at 'all the companies' in Kraft's space
Buffett was answering a question posed by CNBC's Becky Quick regarding whether Campbell Soup (CPB), Mondelez (MDLZ) or others could be targets for Berkshire (BRK.A) following its Heinz and Kraft (KRFT) deals.
08:13 EDTBRK.ABuffett says 'we look at everything' in terms of M&A targets
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08:07 EDTBRK.ABuffett says will hold about 320M shares of newly combined Kraft-Heinz
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08:03 EDTBRK.ABuffett says Kraft Foods deal 'in the works' for four weeks or so
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06:08 EDTBRK.AKraft Foods, H.J. Heinz merge to form The Kraft Heinz Company
Privately held H.J. Heinz Company and publicly held Kraft Foods Group (KRFT) announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America. Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft's boards, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10B is being fully funded by an equity contribution by Berkshire Hathaway (BRK.A) and 3G Capital. The special cash dividend payment represents 27% of Kraft's closing price as of March 24. Together the new company will have eight $1B-plus brands and five brands between $500M-$1B. Warren Buffett, Chairman and CEO of Berkshire Hathaway said, "I am delighted to play a part in bringing these two winning companies and their iconic brands together. 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." When the transaction closes, Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, will become the Chairman of The Kraft Heinz Company. John Cahill, Kraft Chairman and CEO, will become Vice Chairman and chair of a newly formed operations and strategy committee of the board. Bernardo Hees, CEO of Heinz, will be appointed CEO of The Kraft Heinz Company. The Kraft Heinz Company will be co-headquartered in Pittsburgh and the Chicago area. The synergy potential includes an estimated $1.5B in annual cost savings implemented by the end of 2017. Synergies will come from the increased scale of the new organization, the sharing of best practices and cost reductions, the companies said. The transaction is expected to be EPS accretive by 2017. Once the transaction is complete, The Kraft Heinz Company plans to maintain Kraft's current dividend per share, which is expected to increase over time. Kraft has no plans to change its dividend prior to closing. The special cash dividend of $10B in the aggregate to existing Kraft shareholders will be paid upon closing and will be funded by an equity investment by Berkshire Hathaway and 3G Capital. Shares of the company will continue to be publicly traded. As the cash consideration is fully funded by common equity from Berkshire Hathaway and 3G Capital, the merger is not expected to increase the debt levels of The Kraft Heinz Company. The transaction is subject to approval by Kraft shareholders, receipt of regulatory approvals and other customary closing conditions and is expected to close in the second half of 2015. Lazard served as exclusive financial advisor for Heinz, and Centerview Partners served as exclusive financial advisor for Kraft.
06:02 EDTBRK.AKraft Foods, H.J. Heinz announce definitive merger agreement
H.J. Heinz Company and Kraft Foods Group (KRFT) announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America. Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft's boards, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10B is being fully funded by an equity contribution by Berkshire Hathaway (BRK.A) and 3G Capital.

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