Heinz and Kraft get regulatory approval from Canada’s Competition Bureau for proposed merger
Posted: 11 June 2015 | Victoria White | No comments yet
The proposed merger of H. J. Heinz Company and Kraft Foods Group is another step closer to going ahead with the approval of Canada’s Competition Bureau…
The companies have announced that the Canadian Competition Bureau has issued a “no action” letter indicating that the Bureau does not intend to challenge the proposed merger. This follows the announcement on Tuesday that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (“HSR Act”) has expired – another condition of the merger.
The merged “Kraft Heinz Company” will form the third largest food and beverage company in North America
The transaction still remains subject to approval by Kraft shareholders and other customary closing conditions before it can go ahead.
Kraft will hold a special meeting of shareholders to vote on the merger on 1 July 2015. Additional information concerning the proposed merger and the special meeting is included in the definitive Proxy Statement/Prospectus, which was filed with the Securities and Exchange Commission on June 2, 2015 and mailed to Kraft shareholders who are entitled to vote on the proposal.
If the merger goes ahead, the “Kraft Heinz Company” will form the third largest food and beverage company in North America.
Under the terms of the agreement, 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.