Kraft and Heinz complete merger

The Kraft Heinz Company has completed the previously announced merger of Kraft Foods Group and HJ Heinz, which has the potential of creating the third largest food and beverage company in North America.

Brazilian private equity firm 3G Capital, who acquired HJ Heinz two years ago for $23.2bn, completed the merger.

The new entity will be called The Kraft Heinz Company, and is expected to have revenues of approximately $28bn, with eight brands over $1bn in revenues and five brands between $500m-$1bn.

Speaking about its objectives, The Kraft Heinz Company said in a statement: "The Company’s immediate focus is on integrating the two businesses and establishing a new organisational structure, while delivering its financial objectives for 2015.

"The Kraft Heinz Company remains committed to its hometowns, with co-headquarters in Pittsburgh and the Chicago area. The Heinz brand and business will remain headquartered in Pittsburgh and the Kraft brand and business will remain headquartered in the Chicago area."

According to a previous statement, Berkshire Hathaway and 3G Capital will invest an additional $10bn in the new company, and the existing shareholders of Heinz will collectively own 51% of it.

The new company further stated that the complementary nature of the two brands will present it with opportunity for synergies that will lead to increased investments in marketing and innovation.

Before the acquisition of Kraft and Heinz, 3G acquired private fast-food restaurant Burger King Worldwide in 2010.