Warren Buffett Fumes Over Kraft Heinz Split: "No Shareholder Vote, No Fair Play" (2025 Update)
- Why Is Warren Buffett So Angry About the Kraft Heinz Split?
- How Has the Market Reacted to the Split Announcement?
- What’s Behind Kraft Heinz’s Desperate Move?
- Could Buffett’s Next Move Trigger a Fire Sale?
- How Does This Fit Into Berkshire’s Broader Portfolio?
- FAQs: Your Kraft Heinz Split Questions Answered
Warren Buffett, the legendary investor and Berkshire Hathaway CEO, is livid over Kraft Heinz's decision to split into two companies without shareholder approval. With Berkshire owning a 27.5% stake worth $8.9 billion, Buffett argues the MOVE is costly, unnecessary, and undermines investor rights. The market reacted poorly, with Kraft Heinz shares dropping 7.6% intraday. This adds to years of struggles for the food giant, whose stock has lost 69% of its value since the 2015 Kraft-Heinz merger. Here’s a deep dive into the drama, the financial fallout, and what it means for investors.
Why Is Warren Buffett So Angry About the Kraft Heinz Split?
Buffett’s frustration stems from Kraft Heinz’s unilateral decision to split without consulting shareholders—despite Berkshire being its largest investor. In a private call with financial journalist Becky Quick, he revealed that Greg Abel, Berkshire’s next CEO, had already warned Kraft Heinz management of their opposition. "This isn’t just bad governance; it’s a $300 million waste," Buffett fumed, referencing the estimated overhead costs of the split. He even quipped, "Putting Kraft and Heinz together wasn’t genius, but tearing them apart won’t fix it."
How Has the Market Reacted to the Split Announcement?
The news sent Kraft Heinz shares tumbling 7.6% on Tuesday (September 2, 2025), though they pared losses to close the week down 2.4%. This continues a brutal trend: since the 2015 merger, the stock has cratered 69%. Berkshire’s stake, once valued at $30 billion in 2016, now sits at just $10 billion. Buffett disclosed in 2015 that Berkshire paid $9.8 billion for its shares, meaning the position is now underwater by $1 billion. The company has already written down $6.8 billion of its investment since 2019.
What’s Behind Kraft Heinz’s Desperate Move?
Analysts see the split as a last-ditch effort to mask years of poor performance. Thecalled it "neither bold nor clever," blaming endless cost-cutting and failed innovation for the company’s decline. Even Buffett admits the original merger was flawed: "We overpaid," he told Quick. Meanwhile, two Berkshire-appointed Kraft Heinz directors resigned in May 2025 after the company hinted at "value-creating options"—sparking rumors Buffett might sell. While he hasn’t confirmed plans to dump shares, he warned, "We’ll do what’s best for Berkshire."
Could Buffett’s Next Move Trigger a Fire Sale?
If Berkshire sells even part of its 10%+ stake, the fallout could be severe. SEC rules require large block trades to be reported within two days, potentially spooking other investors. Buffett insists he’d only sell if all shareholders got equal offers—unless Kraft Heinz is acquired outright. But with the stock NEAR historic lows, buyers are scarce. "This feels like rearranging deck chairs on the Titanic," joked one hedge fund manager.
How Does This Fit Into Berkshire’s Broader Portfolio?
While Kraft Heinz flounders, Berkshire’s other holdings—like Itochu and Mitsubishi in Japan—remain stable. Its Q2 2025 13F filing showed no major divestments, suggesting Buffett isn’t panicking. Still, the Kraft Heinz debacle is a rare black mark for the Oracle of Omaha. As one analyst put it, "Even legends misjudge mergers sometimes."
FAQs: Your Kraft Heinz Split Questions Answered
Why didn’t Kraft Heinz shareholders vote on the split?
Corporate governance rules allowed Kraft Heinz’s board to approve the split without a shareholder vote—a loophole Buffett calls "unfair."
What are the two new companies post-split?
Details are scarce, but insiders suggest one will focus on North American grocery brands (e.g., Kraft Mac & Cheese), while the other handles global products like Heinz ketchup.
How much has Berkshire lost on Kraft Heinz?
Berkshire’s stake is down ~$20 billion from its 2016 peak. Factoring in write-downs, the loss exceeds $7 billion.
