Kraft Heinz Not Interested in Buying Mondelez

Sept. 6, 2017
Warren Buffett tells CNBC the often-rumored deal is not likely.

Warren Buffett may have ended a recurring rumor when he told CNBC in August that Kraft Heinz, which he partly controls, is not likely to buy Mondelez International.

Buffett, chairman and CEO of investment firm Berkshire Hathaway and himself a billionaire, had been ready to help finance Kraft Heinz’s bid for Unilever in February, a brief pursuit that became public. But when the European company balked, Kraft Heinz withdrew its offer. One of Buffett’s investing principles is not to chase hostile deals, CNBC reported.

Since then, Mondelez’s name repeatedly has been mentioned by analysts as a possible target if Kraft Heinz were on the hunt for more deals. In fact, Mondelez used to be part of Kraft until the mostly international snacking business broke away in 2012.

Berkshire Hathaway and Brazilian private equity firm 3G Capital are the largest shareholders in Kraft Heinz, although the company is publicly held.

CNBC also noted Buffett’s remarks deflated the prices of not only Mondelez stock but those of Campbell Soup, General Mills and Kellogg, which have occasionally been mentioned as takeover possibilities.

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