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Berkshire CEO Abel Praises Kraft Heinz for Halting Spin-off Plan and Achieving Business Turnaround

Berkshire CEO Abel Praises Kraft Heinz for Halting Spin-off Plan and Achieving Business Turnaround

新浪财经新浪财经2026/02/14 20:28
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By:新浪财经

Berkshire Hathaway's new CEO has expressed approval for the unexpected pivot announced this week by Kraft Heinz's newly appointed CEO.

In the food company's fourth-quarter financial report, Steve Cahillane stated that in the five weeks since he took office, he has realized: "The company's opportunities are greater than expected, many challenges have solutions, and all are within manageable range." As a result, he decided to suspend the Kraft and Heinz spin-off plan announced last September. If implemented, the plan would essentially reverse the 2015 merger of the two companies orchestrated by Buffett.

Berkshire is the largest shareholder of Kraft Heinz, holding 27.5% of the shares, currently valued at approximately $8.1 billion.

In a statement released to the media, Berkshire CEO Greg Abel expressed support for the adjustment: "We support CEO Steve Cahillane and the Kraft Heinz Board's decision to pause the previous spin-off plan under the new management team. This move allows management to focus on enhancing the company's competitiveness and its ability to serve customers."

Buffett usually does not publicly criticize the management of Berkshire's subsidiaries, but when the spin-off plan was announced more than five months ago, he unusually voiced his disagreement. In a private call with reporters, he said he was "disappointed" and did not rule out reducing or even liquidating Berkshire's position in Kraft Heinz. "Merging them in the first place was clearly not a brilliant move, but I don't think a spin-off will solve the problem either."

Just three weeks ago, Abel filed documents with the US SEC, planning to reduce up to 99.9% of Berkshire's 325.6 million Kraft Heinz shares as of September 30, signaling a strong intent to significantly cut the position.

Kraft Heinz's decision to maintain integrated operations may prevent the aforementioned reduction from actually happening.

Did Berkshire's previous preparation for a reduction influence Cahillane's change of strategy?

It cannot be confirmed at this time, but if that is the case—or even if it was intentional pressure—it would clearly deviate from Buffett's long-held principle of "non-intervention in management" for portfolio companies.

Kraft Heinz's share price briefly fell after the suspension of the spin-off was announced on Wednesday morning, but quickly rebounded and ended the week up 0.7%.

Follow-up Attention

Berkshire Hathaway is expected to submit its latest holdings report to the SEC after the close on Tuesday (UTC+8), disclosing its holdings as of December 31 (end of Q4).

The market will focus on:

  • Whether it continues to reduce holdings in Apple and Bank of America
  • Whether the newly established Google position in Q3 will be increased
  • How investment portfolio manager Todd Combs, who joined JPMorgan Chase in December, will adjust his managed positions

According to Berkshire's announcement, Greg Abel's first annual letter to shareholders will be released at 8 a.m. (US Eastern Time) on February 28 (Saturday), along with the company's annual report, fourth-quarter financial results, and information about the May 2 shareholders meeting.

Berkshire Stock Price and Financial Data (as of publication)

  • BRK.A share price: $751,425.00;
  • BRK.B share price: $497.55;
  • BRK.B P/E ratio (TTM): 15.91;
  • Berkshire market capitalization: $1.076049449409 trillion;
  • Cash reserves as of September 30: $381.7 billion (up 10.9% from June 30);
  • Excluding railroad cash and Treasury bills payable: $354.3 billion (up 4.3% from June 30);
  • No stock buybacks since May 2024.

Berkshire Major Holdings (as of February 13, 2026)

Editor: Ding Wenwu

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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