The merger of Kraft Foods Group Inc., Northfield, Ill., and H.J. Heinz Co., Pittsburgh, could create a single company with combined retirement assets of about $13.3 billion.
The combined company would be called The Kraft Heinz Co. Kraft shareholders, who still need to approve the deal, would own 49% of the new company and Heinz shareholders, 51%, said a joint news release from Kraft and Heinz. Heinz was taken private by Berkshire Hathaway and 3G Capital in 2013.
Berkshire Hathaway and 3G Capital will invest an additional $10 billion in the new company, according to the news release.
The transaction is expected to close in the second half of the year. Terms of the deal were not disclosed. Information was unavailable on how the companies' retirement programs would be affected by the merger.
Kraft had $5.96 billion in U.S. defined benefit assets and $1.28 billion in Canadian DB assets, as of Dec. 27, 2014, according to the company's 10-K filing. In the same filing, Kraft said it would freeze its U.S. pension funds for current salaried and non-union hourly employees effective Dec. 31, 2019.