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H.J. Heinz gets Canada's green light for Kraft Foods merger

Staff writer |
H.J. Heinz Company and Kraft Foods Group announced that the Canadian Competition Bureau has issued a "no action" letter indicating that the Bureau does not intend to challenge the companies’ proposed merger.

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The transaction remains subject to approval by Kraft shareholders and other customary closing conditions.

Kraft will hold a special meeting of shareholders to vote on the merger on July 1, 2015.

H.J. Heinz Company and Kraft Foods Group, Inc. announced bak in March that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America.

Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft's boards, Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51% on a fully diluted basis.

Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10 billion is being fully funded by an equity contribution by Berkshire Hathaway and 3G Capital. The proposed merger creates substantial value for Kraft shareholders.

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