Dive Brief:
- Warren Buffett's Berkshire Hathaway Inc. is now H.J. Heinz Co's majority shareholder, as Berkshire purchased another 5.4% of outstanding common stock for a 52.5% overall stake.
- Berkshire exercised a warrant to pay about a penny a share, receiving 46.2 million shares for $462,000.
- That warrant was a part of Berkshire's $23 billion acquisition of Heinz in conjunction with Brazilian private equity firm 3G Capital in 2013.
Dive Insight:
Berkshire's move for majority stake ownership has gone into effect less than two weeks before Kraft Foods Group shareholders are set to vote to approve a merger with Heinz to create one of the world's largest food companies.
If this merger takes place, Heinz shareholders will own a 51% stake in the combined company, The Kraft Heinz Co., and Berkshire would own a 27% stake in the company. 3G will be at the helm of day-to-day operations, in which it intends to slash costs for Kraft.