Kraft Foods, the maker of Oscar Mayer meats and macaroni and cheese product, has agreed to a US$100 billion merger with ketchup maker Heinz, they explained in a joint statement Wednesday.

The new Kraft Heinz Company, which will have annual revenues of about US$28 billion, will constitute the 5th largest food company of the world, third in the United States. It will include brands like Philadelphia, Capri Sun and Heinz Tomato Ketchup and HP sauce.

Heinz will own 51 percent of the shareholders, while 49 percent will belong to Kraft.

The master mind of the deal, the is largest ever recorded in the food sector, was Heinz's wealthy owners, Brazilian private equity firm 3G and Warren Buffett's Berkshire Hathaway, according to the Telegraph.

Berkshire Hathaway and 3G will contribute $10bn in the Kraft Heinz Company in order to fund the cash payout to Kraft shareholders.

Buffett said he was "delighted to play a part in bringing these two winning companies and their iconic brands together," adding  "This is my kind of transaction, uniting two world-class organizations and delivering shareholder value. I’m excited by the opportunities for what this new combined organization will achieve.”