2 days ago
Kraft Heinz Failure Is a Cautionary Tale for Many M&A Deals
One of the most totemic deals in the consumer goods industry could soon be unwound – the 2015 combination of HJ Heinz Co. and Kraft Foods Group Inc. This is more than one transaction gone awry. The saga challenges the justifications made for so many mergers and acquisitions. Above all, it underscores that scale is often more of a hazard than a benefit.
Kraft Heinz Co., as the united firm was renamed, is mulling a split into companies focused on condiments and groceries respectively, the Wall Street Journal reported earlier this month. It's been clear for many years that the original tie-up failed to deliver. A breakup would finally acknowledge that the enterprises could more likely thrive apart.
