A bowl of Kraft mac & cheese with Heinz ketchup. In a deal annouced Wednesday, March 25, 2015, Heinz is buying Kraft Foods. [Photo: Imagine China]

Condiment maker Heinz and US food producer Kraft have agreed to merge, creating the world's fifth largest food and beverage company.

Kraft shares have jumped over 40-percent following the merger announcement.

The deal has been engineered by Heinz's owners.

They include Brazilian investment firm 3G Capital, as well as billionaire investor Warren Buffett's Berkshire Hathaway.The new company will have revenues of approximately 28-billion dollars.

The combined company will be named The Kraft Heinz Company.

Its shares would trade publicly.

Current Kraft shareholders will own a 49-percent stake.

Heinz shareholders will have the rest.