The deal sees Mr Buffett's Berkshire Hathaway company and private equity firm 3G agree to take over the food company, famous for its ketchup and baked beans. While the takeover still needs to be voted on by shareholders, it has been approved by the company’s board. This has seen shares in Heinz soar nearly 20 percent in New York to hit the $72.50 price being offered.
"The Heinz brand is one of the most respected brands in the global food industry and this historic transaction provides tremendous value to Heinz shareholders," said Heinz chairman, president and chief executive William Johnson. "We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz."
Berkshire Hathaway will contribute $12-$13 billion in cash to the deal. In total around $23 billion of the deal will be in cash, with the rest in debt.