Kraft Foods, the maker of Velveeta cheese and Oscar Mayer meats, will merge with ketchup maker Heinz, to form the world's fifth-largest food and beverage company. The new, combined entity will have revenue of about $28 billion (Re. 1,70, 000 Crore). The Kraft shareholders will own a 49 % stake in the combined company and Heinz shareholders 51 %. The Kraft shareholders will get one share in the combined company, which is to be named Kraft Heinz Co, and a special cash dividend of $16.50 for every share.
The combined company will have eight brands worth more than $1 billion each and five worth $ 0.5 billion - $1 billion each.