China approves Heinz takeover by Berkshire Hathaway, 3G Capital
The Chinese Ministry of Commerce has approved the previously announced agreement of Heinz takeover b…The Chinese Ministry of Commerce has approved the previously announced agreement of Heinz takeover by an investment consortium comprised of Berkshire Hathaway and 3G Capital.
The transaction, which remains subject to certain customary closing conditions, including receipt of remaining regulatory approvals, is now expected to be completed in early- to mid-June.
Heinz has received regulatory approval in the US, Brazil, India, South Korea, Japan, Israel, Mexico, South Africa and Ukraine, and other regulatory approvals in Russia, New Zealand and Ireland. However, the approvals are pending from the European Union and Russia.
In February, an investment consortium comprised of Berkshire Hathaway and 3G Capital has entered into an agreement to acquire American food company HJ Heinz for $28bn, including the assumption of outstanding debt. The agreement was approved by Heinz shareholders on 30 April.
Following the completion of the transaction, Heinz shareholders will receive $72.50 in cash for each share of common stock, in a transaction valued at $28b, including the assumption of Heinz's outstanding debt.
HJ Heinz is a global company that produces and markets foods specializing in ketchup, sauces, meals, soups, snacks and infant nutrition. Its brand portfolio includes Heinz ketchup, sauces, soups, beans, pasta and infant foods, Ore-Ida potato products, Weight Watchers Smart Ones entrées, T.G.I. Friday's snacks, and Plasmon infant nutrition.
The US company reported sales of $2.83bn in the second quarter of fiscal 2013, up from $2.81bn in the previous year.
