Kraft × Heinz Merger

On March 25, 2015, H.J. Heinz Company and Kraft Foods Group, Inc. announced that they have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America. At the time of merger, Heinz derived 60 of its sales from regions other than North America, while Kraft derived 98 of its sales from North America. The merger provided scope for the combined entity to sell Krafts brands in international markets. The combined company also expected to realize $1.5 billion in annual cost savings by the end of 2017. It hasnt been smooth sailing since the merger. At first, Kraft Heinzs stock price climbed problems soon began to emerge. Sales started softening and the stock dropped as investors got nervous. Kraft Heinz also laid off 2,500 employees, roughly 5 percent of its global workforce and paid a $62 million fine for improper claims of $200m in cost savings reportedly from merger.