Heinz, Kraft merge


USA TODAY: Kraft and Heinz are forming the fifth-largest food corporation in the world.

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USA TODAY: Kraft and Heinz are forming the fifth-largest food corporation in the world.

The news propelled Kraft shares nearly 34% — up nearly $21 — in mid-day trading. The massive merger, initially valued at around $36 billion, will allow Kraft “to move and grow faster than we could on our own,” said Kraft CEO John Cahill, in conference call. He would become vice-chair of the newly-formed Kraft Heniz Co.

The firms said the deal was unanimously approved by the boards of directors of both companies. The new firm will be co-headquartered in Pittsburgh and in the Chicago area, with no plans to close either operation.

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