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  • Kraft and Heinz to form North America's No.3 food company

    Kraft Foods Group Inc, the maker of Velveeta cheese, will merge with ketchup maker H.J. Heinz Co, owned by 3G Capital and Warren Buffett's Berkshire Hathaway Inc, to form North America's third-largest food and beverage company.

    Kraft's shares rose 34 percent to $82.50 in premarket trading on Wednesday.

    The combined company, to be led by Heinz Chief Executive Bernardo Hees, will have revenue of about $28 billion, less than half that of market leader PepsiCo in 2014.

    Kraft, like other packaged-food makers, is battling sluggish demand as consumers shift to products that are perceived to be healthier.


  • #2
    Kraft accused of wheat price fixing

    The US Commodity and Futures Commission (CTFC) alleges it and its former subsidiary Mondelez Global bought $90m (£61m) of wheat futures but had no intention of taking delivery of it.

    The CTFC said their huge purchase raised the price of the commodity and earned them a profit of $5.4m.

    Kraft recently agreed a merger with Heinz in a move that would create the world's fifth largest food company.

    The regulator wants to apply a permanent injunction on future violations as well as to apply financial penalties.

    In 2010, Kraft took over chocolate maker Cadbury, but in 2012 spun the firm off as part of its global snacks business Mondelez, which includes brands such as Oreo biscuits and Trident gum.