Posted by & filed under Financial Accounting, Managerial Accounting.

Description: As some have observed, for years people have been putting Heinz Ketchup on Kraft Dinner. So maybe that serves as visual reminder of another mega merger this past week as the two companies join together. One motivation seems to be to open the Kraft brand to more international markets. The second motivation could be the estimated $1.5 billion in cost savings from the merger.

Source: Globe and Mail.com

Date:  March 25, 2015

Link: http://www.theglobeandmail.com/report-on-business/video/video-the-bottom-line-heinz-kraft-deal/article23619910/#video0id23619910

Discussion Points:

1) Were you surprised by this merger?

2) How do you think the figure of $1.5 billion in estimated cost savings have been developed?

3) Based on your understanding of the merger, what accounting treatment do you think the financial statements will show?

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