Kraft and Heinz Merger Creates Opportunities For Overseas Growth
Kraft Foods has agreed to merge with Heinz, creating the third-largest food and beverage company in North America and the fifth largest in the world.
Shares of Kraft Foods are soaring in Wednesday trading after the company agreed to merge with Heinz in a cash-and-stock deal that will create the third-largest food and beverage company in North America and the fifth largest in the world. The combined publicly traded entity, called the Kraft Heinz Company, will have revenues of approximately $28 billion. It's expected to save about $1.5 billion in annual costs by the end of 2017. The new company sees synergy opportunities with a strong platform for organic growth in North America. It also sees opportunities for global expansion, by combining Kraft's brands with Heinz's international platform, which is what makes Jim Cramer a fan of this deal.
