The new combined company will be named The Kraft Heinz Company and is set to be co-headquartered in Pittsburgh and the Chicago area.
The merger will see current Heinz shareholders take 51% ownership of the combined company with Kraft shareholders owning a 49% stake. Kraft shareholders will receive a special cash dividend of $16.50 per share as part of the deal.
Private equity firm 3G Capital, and fellow Heinz owner Berkshire Hathaway, are set to inject an additional $10bn into the merged company.
Alex Behring, chairman of Heinz and managing partner at 3G Capital, will become the chairman of The Kraft Heinz Company. He said that bringing together two iconic companies will create a strong platform for both US and international growth.
“Our combined brands and businesses mean increased scale and relevance both in the US and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies."
International outlook
While Heinz has a significant international business, Kraft has focussed on North America after spinning out its international snack foods brands into Mondelez in 2012.
The combined company's brands will include Kraft, Heinz, and Oscar Mayer.
