February 15, 2013 / 4:00 PM / 7 years ago

Heinz deal breakup fee totals $1.4 billion: filing

Traders work at the post that trades H.J. Heinz Co. on the floor of the New York Stock Exchange, February 14, 2013. Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital will buy ketchup and baby food maker H.J. Heinz Co for $23.2 billion in cash, a deal that combines 3G's ambitions in the food industry with Buffett's hunt for growth. REUTERS/Brendan McDermid

(Reuters) - If Warren Buffett and Brazilian investment group 3G Capital back away from their proposed $23 billion acquisition of H.J. Heinz Co. HNZ.N, they’ll have to pay up.

The reverse break-up fee - the amount that Buffett and 3G will have to pay Heinz if they can’t close the deal - totals $1.4 billion, according to a regulatory filing on Friday.

Buffett’s Berkshire Hathaway (BRKa.N) and 3G would each pay 50 percent of the fee, the documents said. The fee is roughly 5 percent of the deal value, which includes $5 billion in debt. That’s largely in line with historical averages.

J.P. Morgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) committed to $14.1 billion in debt financing, according to the filing.

Reporting By Olivia Oran; Editing by Nick Zieminski

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below