The billion-dollar H.J. Heinz and Kraft Foods merger that had created ripples in the global food and beverage industry, was officially completed on July 2, forming an F&B behemoth which now stands as the fifth-largest such company in the world. The merger, when it was announced in March, had forced the competition to sit up and take note of the development. Initially, there was also come skepticism about whether the regulators would give their stamp of approval to this development.
As the two companies now come together to form KraftHeinz, they also consolidate a broad portfolio of products, including iconic brands such as Jell-O, Heinz ketchup and Kool Aid. An official statement was released by the companies, stating that the collaboration had reached the final stage and was completed in keeping with the regulatory requirements.
The statement said that the two companies, with a common portfolio, now have substantial “synergy opportunities”. It is only a matter of time now before the new entity engages in more investments and innovation in marketing. While Kraft was founded in 1903, Heinz’s inception goes back to 1869.
The merger was finalized after Kraft shareholders gave their nod of approval, and the company’s books then went on to record the merger as being complete. The merger was closed just ahead of the 4th July holiday in the United States.
Besides being the fifth-largest F&B company globally, Heinz Kraft is also now the third largest such entity in the North America region. In terms of revenue, the combined company brings to the table US$28 billion, following Pepsico and Nestle in the North America market. When trading opens, the new company’s shares will trade under the ‘KHC’ symbol.
The senior leadership of the company was announced just last week, and Heinz’s CEO, Bernardo Hees, will continue to hold the same position in the merged company.