Investment firms, 3G capital and Berkshire Hathaway, have teamed up to create a new company through the merger of H.J. Heinz Co. and The Kraft Foods Group. The new company thus created will be called The Kraft Heinz Company. In terms of annual sales, it is expected to be the fifth-largest food company in the world and the third-largest in the U.S. In this article, we summarize the details of the deal and analyze how the fortunes of this new enterprise might evolve.
We currently have a $64 per share price estimate for Kraft Foods Group, which is significantly below its current market price.