The $23 billion purchase of Heinz by the Warren Buffet-led group is the largest deal in the history of the food industry.

Warren Buffet’s $23.3 billion Heinz deal could herald merger activity

February 20, 2013 9:08 am Published by Leave your thoughts

When reports emerged Thursday that Warren Buffett and Brazilian billionaire Jorge Paulo Lemann teamed up to to purchase Heinz for a reported $23 billion, the immediate reaction centered around the financial weight and cultural impact surrounding the largest transaction ever in the food industry. In the aftermath, though, speculation emerged concerning the long-term effects of the deal, with many experts projecting that the Heinz deal, along with the flood of similar moves recently, could lead to an influx of mergers in the coming months.

Another major element of the projection is the fact that the reports of the Heinz deal emerged before another prominent merger – the union between US Airways and AMR, which was reported previously on this blog – had even left the news cycle.

The sheer impact of the two deals is likely to play an enormous role in influencing the rest of the market, should the prediction of rising mergers come to pass. While the Heinz deal was enormous in itself and involved the ownership of a company that was founded in 1869, the airline merger resulted in the creation of the world's largest airline. Such monolithic transactions are likely to sway the rest of the market and should be encouraged, according to some experts.

"The comeback to the idea that bigger is better, bigger should not be constrained, that financial winds should be allowed to do what they do best – I think that is a trend – but government should also be a force involved in [tempering] it," Diana Moss of the American Antitrust Institute told the Huffington Post.

Whether it's a merger between multinational corporations or the formation of new business, small businesses are encouraged to seek legal counsel whenever they engage in any sort of negotiations or transactions. For local businesses, it's recommended that they enlist the services of a Phoenix small business attorney to achieve the best results for their needs.

Related posts:

  1. NY court approves AMR-US Airways merger
  2. A-B’s $20.1 billion merger survives antitrust court
  3. Macy’s goes to court over J.C. Penney-Martha Stewart deal
  4. Federal budget deal makes it easier for Arizona small businesses

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