The proposed merger between Kraft and Heinz has been approved by Canadian authorities

Regulatory approval

The merger, which was announced in March, was subject to regulatory approval. It has now been approved by the Canadian Competition Bureau. The merge is pending Kraft shareholders’ approval, who will vote in July.

Fifth-largest food and beverage company

The deal between the two companies will create the fifth-largest food and beverage company in the world, and combined the company will be called The Kraft Heinz Company. Under the merger, Kraft shareholders will own a 49% stake in the combined company and the current Heinz shareholders will own the remaining 51%. The deal was engineered by Heinz's owners, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett's Berkshire Hathaway.

Combining brand portfolios

Together the new company will have eight $1 billion brands and five brands between $500m and $1bn. The merger brings together two portfolios of brands, including Heinz, Kraft, Oscar Mayer, Ore-Ida and Philadelphia.

Alex Behring, Chairman of Heinz and the Managing Partner at 3G Capital, said, “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally”.