THE parent company of the firm that produces Worcestershire sauce is set for a massive merger.

Food giant Heinz is set to buy Kraft in a deal that will gather some of the UK's best-known grocery brands within one food firm.

Heinz owns Lea & Perrins, the makers of Worcestershire sauce.

The new firm - to be called the Kraft Heinz Company - will become one of the largest food companies in the world.

Heinz's owner, the Brazilian investment firm 3G Capital, and billionaire investor Warren Buffett's Berkshire Hathaway, engineered the move, which still requires approval from Kraft shareholders.

Current Heinz shareholders will own 51 per cent of the combined company, with Kraft shareholders owning a 49 per cent stake.

Kraft's high-profile brands are Philadelphia, Dairylea cheese triangles and Capri Sun fruit juice.

It is best known in the UK for its controversial takeover of chocolate-maker Cadbury in 2010 for £11.5 billion.

In 2012 it announced that Cadbury would become part of its spin-off business Mondelez.

Heinz is renowned for its beans, ketchup, HP Sauce and Lea & Perrins products.