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Warren Buffett said CNBC on Tuesday that disappointed in Kraft Heinz split This promotes most of the merger of the blockbuster, which he inspired ten years ago.
With 27.5% of the company’s shares, Berkshire Hethai is the largest shareholder Kraft Heinz. The firm has not touched its stocks since time Merger of 2015 This formed a food conglomerate.
After the comments of the company, the company’s stock declined by more than 5%.
Beaffer On Tuesday, the Becky CNBC said that the merger was not a brilliant idea, but he did not think that the company’s analysis will fix its problems.
Greg Abel, who will take the reins in Berkshire Hathaue from Buffett at the end of the year, expressed his disappointment with Kraft Heinz, Buffett reports.
Bottles Heinz Ketchup at the exhibition at the annual Berkshire Hathaway 2018 shareholder meeting.
David A. Grogan | Cnbc
Kraft Heinz did not immediately respond to the request to comment on the Buffett’s position on the deal.
Earlier on Tuesday, the split again divides Kraft Heinz into two companies: one focused on sauces, spreads and shelves and a second, which includes North American steps such as Oscar Mayer, Singles Craft and Lunch.
Berkshire Hathaway has been combined with a private 3G Capital company in 2015 to combine Kraft Foods with HJ Heinz. 3G Capital quietly went out His investment in Kraft Heinz in 2023, after many years periodically trimming his share when the company fought.
Although it has a list of iconic brands such as Oscar Mayer and Velvet, Kraft Heinz saw that sales in the US slide just a few years after the merger. Consumers who understand health bought less packed food and shopping more around the perimeter of the grocery store. Some analysts have also accused the company consumption of costs that prevented Kraft Heinz to invest in their brands at a time when they needed it most.
Seeking to turn the business, Kraft Heinz sold part of his portfolio, such as “Plants Nuts” and some of his cheese divisions. The company also invested in some of his brands, such as “lunch” and “whims of the sun”. In May, Kraft Heinz stated that the company weighed strategic changes and potential operations.
Since the conclusion of the transaction in 2015, Kraft Heinz’s shares collapsed by almost 70% as of Friday’s closing, dragging the company’s market value to $ 33 billion.
Even though other investors lost faith in Kraft Heinz, Buffett stood in the company, though he said CNBC after the catastrophic quarter in 2019 that Berkshire overpayed For power.
As for the future of Berkshire as an investor Kraft Heinz, Buffett said CNBC on Tuesday that Berkshire would do whatever is in the interests of the firm. If Berkshire addressed to sell its shares, the firm will not accept the block if other shareholders do not receive the same offer, Buffett reports.
