Heinz and Kraft have just announced that they are to merge into the world's fifth largest food and beverage company.
Berkshire Hathaway and 3G Capital will invest $10bn (€9.2bn) in the new company which will be called The Kraft Heinz Company.
Kraft on its own is worth $36bn - the new entity is expected to generate annual revenues of $28bn.
Individual investors who own Kraft shares will receive a $16.50 cash dividend, its shareholders will have a 49 percent combined stake in the new company.
Heinz shareholders will own 51 percent of Kraft Heinz.
"This is my kind of transaction, uniting two world-class organisations and delivering shareholder value. I'm excited by the opportunities for what this new combined organisation will achieve," said Berkshire Hathaway CEO Warren Buffett in a statement.
Kraft shares spiked as speculation of a merger grew. The Kraft Heinz Company will be the third largest food group in North America.
