Thursday March 26, 2015
A Student asked about the Kraft Heinz deal, why now?
Brazilian 3 G is known for cost cutting, and Buffet had a hand in this as well. Buffet plans on zero based budgeting, and as the WSJ observed how about some of that for Washington?
So I suspect they will fire the help at Kraft as Kraft was the one taken.
Mergers tend to happen at in bull markets. As one of the largest, it is fitting that this is happening right on the cusp of THE market high. CEOs feel compelled to do something on their watch and buying a competitor is always a way of increasing market share.
Kraft has had lackluster earnings the last few years and so became a target for someone. Innovate or get taken.
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