Warren Buffett's Berkshire Hathaway buys Heinz $28 billion

  • U.S. billionaire Warren Buffett is to acquire food giant Heinz in a deal worth $28 billion.

    Buffett's Berkshire Hathaway company and private equity firm 3G agreed on Thursday to take over the firm, famous for its ketchup and baked beans.

    Shares in Heinz soared nearly 20 percent on Wall Street, hitting the $72.50 price being offered.

    Berkshire Hathaway will contribute $12 to $13 billion in cash to the deal. Around $23 billion of the deal will be in cash, with the rest in debt.

    The takeover has been approved by the company's board. However it still needs to be voted on by shareholders.

    Heinz has been operating in the American market since it was founded in Pittsburgh in the late 19th Century.

    It sells 650 million bottles of its ketchup worldwide every year and is the biggest seller of baked beans in the UK.