Kraft Heinz stock fell 5.6% after reports that Berkshire Hathaway’s new CEO might sell the company’s 325 million shares, fueling concerns about investor confidence in Kraft Heinz amid broader market struggles.
In a filing, Kraft Heinz notified investors that Berkshire Hathaway may be interested in selling its 325 million shares of the food giant Buffett helped establish in 2015.
In 2015, Buffett and the Brazilian investment firm 3G Capital coordinated the Kraft and Heinz merger, since they already owned Heinz and trusted in the strength of their brands.
Before retiring, Buffett expressed disappointment last fall over Kraft Heinz’s plan to divide the company into two.
Berkshire’s two representatives resigned from the Kraft board last spring.
Greg Abel, Warren Buffett’s successor and CEO of Berkshire Hathaway, took on his role starting January 1. Abel’s responsibilities include maintaining Berkshire’s decentralized structure, a key characteristic of the company, while steering it toward a new period of growth.
By CEO NA Editorial Staff
