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Kraft And Heinz Company Merger Analysis

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Kraft And Heinz Company Merger Analysis
Kraft & Heinz Company Merger
Introduction:
Kraft Foods Group and H.J. Heinz Company has merged and became “The Kraft Heinz Company”. The merger was done by 3G Capital and Berkshire Hathaway when he decided to invest 10$ billion US dollar and making it worth 46$ billion US dollar. The merger happened by the agreement of both companies and approval by shareholders and regulatory authorities, it happened in the second of July 2015. The publisher said (unkown) that after this decision was made the Company was expecting to become the fifth largest food company in the world and the third largest company in the United States of America. For a newly merged company like Kraft Heinz Company they have created a new logo but they did not change so that
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The business was started in 1903. Kraft and his brother’s first cheese factory was purchased in Stockton. The company was successful and it was noted by Thomas McInnerney the founder of National Dairy product Corporation. In 1995, Kraft General Foods has became Kraft Foods, Inc. and it was reorganized into a single operating company.
Heinz:
Henry John Heinz is the founder of Heinz Company it was found almost in the early 1850s, in 1859 when he was 15 years old the young entrepreneur began making his first product but. The company had launched its iconic Heinz Ketchup brand after 14 years so from that we know that Heinz Company did not start as a ketchup company. The company went public in the year of 1946, the company cooked 57 Varieties slogan that are still remembered today.
Reasons for corporate restructuring:
• Wants to be the fifth largest company worldwide
• Synergy which is the idea that business activities is combined that will affect the cost by decreasing it and the performance of Kraft & Heinz will
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• They have merged together to grow their earnings and revenues
• Kraft & Heinz company shares the same product line (Horizontal Merger)
Analysis:

One year view:

The Kraft and Heinz Company currently have $64 per share price, which makes it below the current market price.
The price movement of Kraft Heinz:
The publisher said (Gabriel Kane), that (KHC) has $94.2 billion market capitalization and that the company has rose by 0.83% to close the share at $77.66 per share in March,2016. (Kane, G. (2016, March 2)).
Speaking of price changes the % price change in 4 weeks 2.00 and 12 week 5.09 the YTD 5.09.
The highest rank of 52 week is 81.20 and the lowest was 61.42 currently it is 76.81.
Share information:
The shares outstanding in millions: 1,215.19
Market capitalization in millions: 92,913.43

Date Dividends Earnings
16/3/2016 Amount: 0.575, Declared Date: Feb 25 2016, Pay Date: Apr 08 2016 _______
21/12/2015 Amount: 0.575, Declared Date: Dec 08 2015, Pay Date: Jan 15 2016
_______
12/11/2015 Amount: 0.575, Declared Date: Nov 05 2015, Pay Date: Nov 20

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