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Buffett, Brazil's 3G team up for $28.8b Heinz buyout

Published on Feb 15, 2013 7:15 AM
 
Bottles of Heinz ketchup are displayed on a shelf at Bryan's Market on Feb 14, 2013 in San Francisco, California. Mr Warren Buffett's Berkshire Hathaway and Brazilian private equity firm 3G Capital will buy ketchup maker H.J. Heinz Co for US$23.2 billion (S$28.8 billion) in cash, a deal that combines 3G's ambitions in the food industry with Buffett's hunt for growth. -- PHOTO: AFP

(REUTERS) - Mr Warren Buffett's Berkshire Hathaway and Brazilian private equity firm 3G Capital will buy ketchup maker H.J. Heinz Co for US$23.2 billion (S$28.8 billion) in cash, a deal that combines 3G's ambitions in the food industry with Buffett's hunt for growth.

Including debt assumption, Heinz valued the transaction, which it called the largest in its industry's history, at US$28 billion. Berkshire and 3G will pay $72.50 per share, a 19 per cent premium to the stock's previous all-time high.

Heinz shares initially rose slightly above the offer price, although Mr Buffett cautioned he had no intention of raising his bid and the stock fell back below that mark by midday.

The stock has been on a tear, almost doubling over the last four years, though analysts said the price seemed fair.

 
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