Proposed Kraft-Heinz Combination Clears a Hurdle

CHICAGO (Chicago Tribune/TNS) -

The proposed acquisition of Kraft Foods Group by H.J. Heinz cleared a waiting period required under law, bringing the deal one step closer to completion, the companies said Tuesday.

The waiting period, set by the Hart-Scott-Rodino Act, allowed the Federal Trade Commission and the Department of Justice to get information about the transaction before it happens.

Kraft shareholders are set to vote July 1 on whether the company should be acquired by the ketchup maker. The combination would create the third-largest food-and-beverage company in North America and the fifth-largest worldwide.

Terms call for each share of Kraft to be converted into the right to one share of Kraft Heinz. Kraft will also declare a special cash dividend of $16.50 per Kraft share.

Heinz’s owners are expected to own about 51 percent of the new company, with Kraft shareholders holding the rest.

If approved, the new company, Kraft Heinz, will be traded on Nasdaq under “KHC.”