Warren Buffett says he is ‘disappointed’ in Kraft Heinz split; shares fall 5%
Warren Buffett told CNBC that he was disappointed on Tuesday. Kraft Heinz The box office records that he addressed ten years ago are divided to relax most of the merger.
Berkshire Hathaway is the largest shareholder of Kraft Heinz with 27.5% shares in the company. The company has not touched its shares since the 2015 merger of the Food Holding.
Following Buffett’s comments, the company’s shares fell more than 5%.
Buffett said on Tuesday that merging from CNBC to Becky Quick was not a brilliant idea, but he doesn’t think that the company will solve the problems.
According to Buffett, Greg Abel, who will take reins to Berkshire Hathaway from Buffett at the end of the year, expressed his disappointment against Kraft Heinz.
Heinz Ketchup bottles 2018 Berkshire Hathaway is exhibited at the annual shareholder meeting.
David A. Grogan | CNBC
Kraft Heinz did not immediately respond to Buffett’s request for a comment on his attitude towards the agreement.
The division, which was announced earlier on Tuesday, once again divides Kraft Heinz into two companies: one focused on sauces, spreads and shelf -resistant dishes, and a second, such as Oscar Mayer, Kraft Singles and Letnables, a second.
Berkshire Hathaway met with a private capital company 3G Capital in 2015 to combine Kraft Foods with HJ Heinz. 3G Capital, while the company periodically cut off its share for years after the Kraft Heinz investment in 2023 quietly.
Although he had a list of iconic brands such as Oscar Mayer and Velveeta, Kraft Heinz saw the US sales receipt just a few years after merging. Consumers with health awareness were buying less packaged food and shopping around the market. Some analysts also accused the company’s decline on cost -lowering measures that prevent the company from investing in their brands at a time when they need Kraft Heinz most.
To reverse the business, Kraft Heinz sold a part of his portfolio like Planters hazelnut and some cheese section. The company also invests in some brands such as Letnables and Capri Sun. In May, Kraft Heinz executives said the company weighed strategic changes and potential transactions.
Even if other investors lost their belief in Kraft Heinz, Buffett stood next to the company, but in 2019 CNBC said that Berkshire made more money for Kraft.
Regarding the future of Berkshire as a Kraft Heinz investor, Buffett told CNBC on Tuesday that Berkshire would do everything that is for the benefit of the company. According to Buffett, if Berkshire is approached to sell its shares, the company will not accept a block offer unless the other shareholders receive the same offer.
