Shares of Kraft Foods are soaring in Wednesday trading after the company agreed to merge with Heinz in a cash-and-stock deal that will create the third-largest food and beverage company in North America and the fifth largest in the world. The combined publicly traded entity, called the Kraft Heinz Company, will have revenues of approximately $28 billion. It’s expected to save about $1.5 billion in annual costs by the end of 2017. The new company sees synergy opportunities with a strong platform for organic growth in North America. It also sees opportunities for global expansion, by combining Kraft’s brands with Heinz’s international platform, which is what makes Jim Cramer a fan of this deal.
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