The company HJ Heinz Co. will buy Kraft Foods Group Inc., creating what companies described as the third food and beverage Company in North America and fifth worldwide.
Kraft shareholders will receive shares in the new company and a special cash dividend of about 10,000 million in total, or $ 16.50 per share.
Heinz Current investors will own 51% of the combined company, while Kraft will have a 49%.
Among the brands of the new firm will be Kraft, Heinz and Oscar Mayer, among others.
The boards of directors of both companies unanimously approved the plan, which is expected to close in the second half of the year.
The new company, which will be renamed Kraft Heinz Company, will have annual sales of about 28,000 million and distribute its headquarters from Pittsburgh (Pennsylvania) and the area of Chicago (Illinois) as they detailed in a statement.
The agreement has been approved by the boards of both groups.
The merger will bring together under one group popular brands such as Heinz, Oscar Mayer, Kraft, and include eight each valued at more than 1,000 million, and five above 500 million.
The fund 3G Capital, led by Brazilian Jorge Paulo Lemann, bought two years ago HJ Heinz group, some 28,000 billion, in a deal which also participated Berkshire Hathaway.
The Brazilian company also owns well-known companies such as Burger King hamburger chain, which he bought in 2010, and also controls InBev, the world’s largest brewer with brands like Budweiser and Stella Artois.
After the deal was announced, Kraft shares soared more than 34% and achieved a market capitalization of about 48,500 million in the Nasdaq market, which have risen by 47% in the last 12 months.
The current Kraft Group is the result of the split in 2012 into two units Kraft Foods, Kraft and Mondelez.
The turnover of Kraft Foods remained stable in 2014 with 18,200 million.
Proponents of the merger believe that this agreement should allow them to save 1,500 million per year by 2017.