Kraft, Heinz deal would combine $13.3 billion of retirement assets

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.

Kraft further announced in its 10-K that it would contribute about $170 million and $25 million to its U.S. and Canadian DB plans, respectively, in 2015, up from $145 million and $16 million, respectively, in 2014.

Kraft Foods Group Inc. Thrift Plan, a defined contribution plan, had $4.59 billion in assets as of Dec. 31, 2013, according to the company's most recent 11-K.

As part of the spinoff from Kraft Foods Inc. in October 2012, Kraft Foods Group assumed $7.99 billion of worldwide benefit obligations and $6.04 billion of plan assets from Kraft Foods Inc., which subsequently changed its name to Mondelez International Inc.

Heinz had $767.6 million in U.S. DB assets and $669.1 million in U.S. DC assets as of Dec. 31, 2013, according to its most recent Form 5500 filed with the Department of Labor.

Michael Mullen, a Heinz spokesman, and Basil Maglaris, a Kraft spokesman, could not immediately be reached for additional information.