So as the headline states Berkshire might…MIGHT…sell its stake in KraftHeinz (KHC). . Obviously this is one of the more prominent value combination disasters in the last 10-15 years, but I do wonder if this news might move the needle on potential investment returns in a singular scenario…acquisition.
As the article mentions, Kellogg/Kellanova separated into 2 companies and both were acquired relatively quickly. I find the Kraft and Heinz split is probably 2 less attractive companies as potential acquisitions compared to Kellogg and Kellanova, but I do wonder if the separation AND Buffett’s increases the chance of an acquisition in 2027 or beyond.
As a noted hater of packaged food stocks and in particular KHC, neither moves the needle for me buying either company post-split. But both the separation and the Berkshire exit make it slightly more intriguing of an option around the time the separation occurs (provided BRK has exited).
Anyone have any thoughts/feelings on whether the BRK exit matters at all to their own thesis?
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