Warren Buffett usually outperforms the market and makes a lot of money for his shareholders. That’s good. When it comes to the merger of Heinz and Kraft, he might be overdoing it.
The executives are pretty open about what’s exciting about the new deal: “This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft’s iconic brands to international markets. We look forward to uniting with Heinz in what will be an exciting new chapter ahead,” said John Cahill, Kraft chairman and chief executive officer.
They mostly talk about the “significant synergy potential” to the tune of $1.5 billion until the end of 2017. And when they said synergies, they meant cost savings because there aren’t many other synergies of two companies this size with established brands and technology.
