Finance
Kraft Heinz looking at M&A opportunities; Berkshire Hathaway leaves board
Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
Quick Summary
Kraft Heinz seeks M&A opportunities as Berkshire exits its board, retaining ownership but no influence, amid market challenges.
Kraft Heinz Explores M&A Options as Berkshire Hathaway Exits Board
(Reuters) -Kraft Heinz said it was looking at strategic transactions as demand for its pricey snacks and ready-to-eat meals weakens in an uncertain economic environment.
The company also said Timothy Kenesey and Alicia Knapp, executives at Berkshire Hathaway-owned companies, were leaving its board of directors after Warren Buffett's conglomerate said it would no longer hold board seats.
Kraft Heinz has been looking for potential merger and acquisition opportunities "over the past several months", chief executive officer Carlos Abrams-Rivera said in a statement.
Consumers are turning to healthier processed food products amid a surge in the use of weight-loss drugs. Tariffs were also adding to Kraft's woes as it lowered its annual organic sales and profit forecasts last month.
Its hot dogs and cold cuts business, Oscar Mayer, was attracting interest from several buyers for a deal that could be worth $3 billion, Reuters reported in October last year.
The company, which has a market capitalization of about $33 billion, declined to comment further on the nature of the strategic transactions.
By exiting the Kraft Heinz board, Berkshire retains its 27.5% ownership but with no influence over its direction.
This could allow Buffett, who has led Berkshire since 1965, or Greg Abel, who is expected to become chief executive on January 1, 2026, to either sell Berkshire's stake or bid for brands that Kraft Heinz might want to sell.
Kraft Heinz has been a challenging investment for Berkshire, with Buffett admitting in 2019 that they overpaid in the 2015 merger of Kraft Foods with H.J. Heinz. This came four days after the packaged food giant took a $15.4 billion writedown on its brands and assets, leading to a $3 billion writedown for Berkshire.
Abel stepped down from Kraft Heinz's board last year.
Berkshire did not immediately respond to a request for comment.
(Reporting by Juveria Tabassum in Bengaluru and Jonathan Stempel in New York; Editing by Vijay Kishore)
Key Takeaways
- •Kraft Heinz is exploring merger and acquisition opportunities.
- •Berkshire Hathaway exits Kraft Heinz's board but retains ownership.
- •Oscar Mayer business attracts potential buyers.
- •Kraft Heinz faces challenges with tariffs and changing consumer preferences.
- •Berkshire Hathaway may adjust its Kraft Heinz investment strategy.
Frequently Asked Questions about Kraft Heinz looking at M&A opportunities; Berkshire Hathaway leaves board
1What strategic actions is Kraft Heinz considering?
Kraft Heinz is looking at strategic transactions, including potential merger and acquisition opportunities, as demand for its products weakens.
2Why are Berkshire Hathaway executives leaving Kraft Heinz's board?
Executives Timothy Kenesey and Alicia Knapp are leaving the board following Berkshire Hathaway's decision to retain its ownership without influence over Kraft Heinz's direction.
3What challenges is Kraft Heinz facing in the market?
Kraft Heinz is facing challenges such as a shift towards healthier processed foods and the impact of tariffs, which have lowered its annual organic sales and profit forecasts.
4What is the estimated value of the Oscar Mayer business?
The Oscar Mayer business is attracting interest from several buyers for a potential deal that could be worth around $3 billion.
5What has Warren Buffett said about Kraft Heinz as an investment?
Warren Buffett admitted in 2019 that Berkshire Hathaway overpaid for Kraft Heinz during the 2015 merger, indicating it has been a challenging investment.
