As CNBC reports, 3G Capital-owned ketchup manufacturer Heinz announced the planes to take control over another biggest American processed food company Kraft Foods. The newly formed entity will be the third largest food conglomerate in the U.S. and the fifth in the world with approximate market value of $80 billion, according to The New York Times.

The Brazilian private investment fund that already owns Budweiser, Burger King and Heinz since 2013, will acquire Kraft Foods in a deal managed and backed by the American billionaire Warren Buffet’s holding company Berkshire Hathaway Inc.

Market analysts explain the motives of Kraft Foods Group Inc., an American split-up from a global Kraft brand currently known as Mondelēz, to strike this M&A deal with 3G-owned Heinz as a strategic move to boost flat sales amid U.S. consumers’ growing demand for healthier non-processed, locally grown food. The management of the company hopes to replicate the success of H.J. Heinz whose operating margins rose from 18 to 26 percent after 3G and Berkshire Hathaway took over the firm in 2013.

The newly formed entity will be known as Kraft Heinz Company. 51% of shares of the new company will be owned by Heinz. The financial side of the deal has not been disclosed.

Thumbnail image is from Cagle.com