Kraft and Heinz announce $50bn merger

A merger between Kraft Foods Group and H.J. Heinz will see the combined entity become the world’s fifth largest food and beverage company.

The merged company will be called The Kraft Heinz Co, and will have revenue of $US28bn. The two companies say the merger will result in costs savings of $US1.5bn over the next three years.

The proposed merger will see Heinz shareholders take a 51 per cent stake in the new company, with Kraft shareholders retaining the rest.

Three years ago, Kraft was split up into two companies: the US grocery brand Kraft and Mondelez International, a global confectionery and biscuit company which also took over the Kraft Food brand in the Asia Pacific region. 

Mondelez has reportedly said the Kraft trademark in Australia is not affected by the deal.