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The
new company, Kraft Heinz Co, will have roughly $28 billion of
annual revenue from brands such as Oscar Mayer, Philadelphia,
Velveeta, Maxwell House, Ore-Ida and Jell-O, as well as Kraft
cheese and Heinz ketchup.
Berkshire Hathaway Inc and Brazilian investment firm 3G Capital,
which together bought Heinz in 2013, own 51 percent of Kraft
Heinz and control six of its 11 board seats, including one for
Berkshire chairman Warren Buffett. Alex Behring, 3G's managing
partner, is Kraft Heinz's chairman.
Most of Kraft Heinz's upper management comes from Heinz,
including Chief Executive Bernardo Hees, 45, a 3G partner.
The 3G firm is known for keeping a close eye on expenses. It has
said it may cut $1.5 billion of annual costs at Kraft Heinz by
2017.
Kraft shareholders overwhelmingly approved the merger on
Wednesday.
The new company will begin trading on the Nasdaq under the
ticker "KHC" on July 6. Kraft shareholders are receiving Kraft
Heinz stock and a $10 billion special dividend.
Kraft Heinz said it "remains committed to its hometowns," with
dual headquarters in Pittsburgh, where Heinz was based, and the
Chicago area. Kraft was based in the Chicago suburb of
Northfield, Illinois.
(Reporting by Jonathan Stempel in New York; Editing by Christian
Plumb)
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