tomatoes

Heinz is synonymous for many consumers with its tomato ketchup brand

Heinz is set to buy its grocery competitor Kraft in a deal that will gather some of the UK’s best-known grocery brands within one of the biggest food firms in the world.

The new firm - which is expected to be called the Kraft Heinz Company - would boast an annual revenue in excess of £18 billion.

The deal has reportedly been engineered by Heinz’s owner, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett’s Berkshire Hathaway.

Both companies’ boards have unanimously approved the deal, which should be finalised in the second half of the year, and still requires approval from Kraft shareholders.

Current Heinz shareholders would own 51 per cent of the combined company, with Kraft shareholders owning a 49 per cent stake.

Kraft’s high-profile brands include Capri Sun fruit juice.