NEW YORK: Warren Buffett said on Monday that his company Berkshire Hathaway Inc. overpaid in the merger that created Kraft Heinz Co.
Berkshire and Brazilian firm 3G Capital had teamed up in 2015 to combine the former Kraft Foods with their H.J. Heinz. They own about half of the merged company, with Berkshire holding a 26.7 percent stake.
“We overpaid for Kraft,” Buffett said on CNBC television. “I was wrong in a couple of ways on Kraft Heinz.”
Buffett spoke four days after Kraft Heinz took a $15.4 billion writedown for its Kraft and Oscar Mayer brands and other assets, slashed its dividend, and said the US Securities and Exchange Commission was probing its accounting. Kraft Heinz also said a turnaround likely wasn’t imminent.
Kraft Heinz tumbled 27.5 percent on Friday, causing Berkshire to lose $4.3 billion on its stake.
Buffett said he had learned about the SEC probe about seven to 10 days before it was announced.
Greg Abel, a Berkshire vice chairman who is widely considered a candidate to succeed the 88-year-old Buffett as Berkshire’s chief executive officer, sits on Kraft Heinz’s board.
Kraft Heinz’s announcement raised questions about 3G Capital’s financial strategy for Kraft Heinz, whose brands include Jell-O, Kool-Aid and Philadelphia cream cheese, and whether it appears increasingly out of step with consumers seeking healthier, fresher alternatives to processed food products.
Buffett acknowledged these changes, but said greater pressure is coming from retailers such as Amazon.com Inc., Walmart Inc. and Costco Wholesale Corp., including through the latter’s Kirkland brand.
“The ability to price has changed, and that’s huge,” Buffett said.
Berkshire overpaid for Kraft Heinz: Warren Buffett
Berkshire overpaid for Kraft Heinz: Warren Buffett
- ‘We overpaid for Kraft. I was wrong in a couple of ways on Kraft Heinz’
- Warren Buffett spoke four days after Kraft Heinz took a $15.4 billion writedown
Jordan’s industry fuels 39% of Q2 GDP growth
JEDDAH: Jordan’s industrial sector emerged as a major contributor to economic performance in 2025, accounting for 39 percent of gross domestic product growth in the second quarter and 92 percent of national exports.
Manufactured exports increased 8.9 percent year on year during the first nine months of 2025, reaching 6.4 billion Jordanian dinars ($9 billion), driven by stronger external demand. The expansion aligns with the country’s Economic Modernization Vision, which aims to position the country as a regional hub for high-value industrial exports, the Jordan News Agency, known as Petra, quoted the Jordan Chamber of Industry President Fathi Jaghbir as saying.
Export growth was broad-based, with eight of 10 industrial subsectors posting gains. Food manufacturing, construction materials, packaging, and engineering industries led performance, supported by expanded market access across Europe, Arab countries, and Africa.
In 2025, Jordanian industrial products reached more than 144 export destinations, including emerging Asian and African markets such as Ethiopia, Djibouti, Thailand, the Philippines, and Pakistan. Arab countries accounted for 42 percent of industrial exports, with Saudi Arabia remaining the largest market at 955 million dinars.
Exports to Syria rose sharply to nearly 174 million dinars, while shipments to Iraq and Lebanon totaled approximately 745 million dinars. Demand from advanced markets also strengthened, with exports to India reaching 859 million dinars and Italy about 141 million dinars.
Industrial output also showed steady improvement. The industrial production index rose 1.47 percent during the first nine months of 2025, led by construction industries at 2.7 percent, packaging at 2.3 percent, and food and livestock-related industries at 1.7 percent.
Employment gains accompanied the sector’s expansion, with more than 6,000 net new manufacturing jobs created during the period, lifting total industrial employment to approximately 270,000 workers. Nearly half of the new jobs were generated in food manufacturing, reflecting export-driven growth.
Jaghbir said industrial exports remain among the economy’s highest value-added activities, noting that every dinar invested generates an estimated 2.17 dinars through employment, logistics, finance, and supply-chain linkages. The sector also plays a critical role in narrowing the trade deficit and supporting macroeconomic stability.
Investment activity accelerated across several subsectors in 2025, including food processing, chemicals, pharmaceuticals, mining, textiles, and leather, as manufacturers expanded capacity and upgraded production lines to meet rising demand.
Jaghbir attributed part of the sector’s momentum to government measures aimed at strengthening competitiveness and improving the business environment. Key steps included freezing reductions in customs duties for selected industries, maintaining exemptions for production inputs, reinstating tariffs on goods with local alternatives, and imposing a 16 percent customs duty on postal parcels to support domestic producers.
Additional incentives in industrial cities and broader structural reforms were also cited as improving the investment climate, reducing operational burdens, and balancing consumer needs with protection of local industries.
