7 months ago
Berkshire to Sell Kraft Heinz Stake
Berkshire Hathaway, a big company owned by Warren Buffett, is selling its share in Kraft Heinz, a food company.
They bought this share a long time ago, but it hasn't been doing well.
The value of the company has gone down a lot, and Buffett has said they paid too much for it.
Now, Kraft Heinz is splitting into two smaller companies, and Berkshire wants to sell its part.
They are getting ready to sell over 325 million shares.
This is something Buffett has said he regrets, and it's cost them a lot of money.
Berkshire Hathaway is selling its 28% stake in Kraft Heinz.
Kraft Heinz is splitting into two independent public companies.
The stock has dropped over 70% from its 2017 peak.
Buffett admitted to overpaying for Kraft in the 2015 merger.
Berkshire took a $3.8 billion write-down on its Kraft Heinz holding last year.
- Who
- Berkshire Hathaway
- What
- Selling 28% stake in Kraft Heinz
- Where
- United States
- When
- After nearly a decade
- Why
- To unwind a 'rare misstep' by Warren Buffett
Key facts
- Company
- Berkshire Hathaway
- Stake
- 28%
- Company
- Kraft Heinz
- Shares
- 325.44 million
- Market Value
- Under $33 billion
- Initial Value
- $24 billion
- Write-down
- $3.8 billion
Quotes
Warren Buffett
Chairman and CEO of Berkshire Hathaway
“Well, we did overpay. We didn’t overpay for Heinz when we bought it. Originally. It was a 50-50 private deal with 3G. We had two stockholders. And then we overpaid for Kraft, we wrote down $15 billion of that…”
financialexpress.com
Sources
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