HJ Heinz, owned by Warren Buffett’s Berkshire Hathaway is to merge with Kraft Foods Group. This will create a giant in the food industry with estimated revenues of $28 billion. Heinz-Kraft will become the world’s fifth largest food company.

Heinz will buy 51% of Kraft in a deal brokered by Berkshire and the Brazilian-based private equity company 3G.

The new company will be called The Kraft Heinz Company and will be the third-largest food and beverage company in North America. It will have eight brands that each generates more than $1 billion a year in sales, including Philadelphia cream cheese and Heinz’s signature tomato ketchup.

You can read more about the merger in the BBC report here.

Visual courtesy: bbc.com