With 98% of votes casted in favor of the transaction, Kraft Foods Group Inc. has approved the previously announced merger agreement to create The Kraft Heinz Company. The 98% represented more than 69% of all outstanding Kraft shares; therefore, the way has been cleared for the merger to close tomorrow, July 2, 2015, after market close, subject to certain customary closing conditions.
The transaction will create the third-largest food and beverage company in North America, and the fifth-largest food and beverage company in the world.
“Today’s approval to create The Kraft Heinz Co. will unite two powerful businesses, deliver incredible shareholder value, and provide a platform for growth both domestically and internationally,” said Alex Behring, future chairman of The Kraft Heinz Co. and managing partner at 3G Capital.
“This truly is a historic moment for our two companies as we combine to become a global food and beverage leader with an unparalleled portfolio of great brands,” said John Cahill, Kraft Foods Group chairman and CEO and future vice chairman of The Kraft Heinz Co. “It has been a privilege to serve Kraft, and I look forward to continue serving The Kraft Heinz Co. on its board of directors.”
The merger was announced on March 25, 2015 and received regulatory approvals in the U.S. and Canada. The final voting results will be disclosed in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission later today.