Warren Buffett celebrated July 4 with a New Stock — Kraft Heinz

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by Jaime Williams, CFA, via Standard Daily |

If Warren Buffet is going to eat too much hot dogs dipped in Heinz Ketchup, Velveeta cheese and other foods of The Kraftz Heinz Company then you must not be too much surprised. The Kraft Heinz Company is the 5th largest food and beverage company of U.S. The company would start trading on Nasdaq by this Monday.

Warren Buffet would be bringing the ketchup and cheese to the public markets by partnering with the Brazilian equity firm 3G capital.

During 2013, Berkshire Hathaway invested alongside with 3G taking over ketchup maker company Heinz in the total stakes of $11 billion. 3G was very much successful in running the company as they had quickly improved the EBITDAby 35% within very few quarter fiscals. Then the company has given $40 billion cash for Kraft foods, which is food and Beverage Company. Kraft foods were having sales of over $18 billion per year, they were also having established brands ranging from meats to drinks.

In late March that deal was announced and according to that deal, Kraft Foods investors were offered $16.50 for each share they are holding. 51% stake was reserved by Berkshire Hathaway and 3G Capital.

Heinz’s takeover of the Kraft Foods have closed on Thursday, and this new company will start trading their shares on the Nasdaq from Monday July 6th.

Before closing the deal it was announced by Kraftz Heinz that Bernardo Hees who is also the executive of 3G will also become CEO of the combined company. Whereas, Heinz CFO Paulo Basilio will be appointed with the same role he had with the fused company. The senior leadership roles will go to Heinz executives Matt Hill, EminMammadov, Michael Mullen, Eduardo Pelleissone, Marcos Romaneiro, Francisco Sa and Melissa Werneck.

Bernardo Hees said in the statement, “Kraft and Heinz are both world-class organizations with storied pasts and together, an even brighter future.”

Kraft Foods is trading at $88.19 a share, when trading closed on Thursday.

Buffett joked that nobody smiles at the organic grocer. Investors aren’t either. Shares of Whole Foods plunged due to weak sales growth. Will new stores with cheaper products be the answer to its problems?

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