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Kraft Heinz to split into two companies

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Kraft Heinz will split into two companies, reversing much of the blockbuster $46 billion merger from a decade ago that created one of the biggest food companies in the world.

The first of the two new companies, which are not yet named, will primarily include shelf-stable meals and will be home to brands such as Heinz, Philadelphia and Kraft mac and cheese. Kraft Heinz said that company on its own would have $15.4 billion in 2024 net sales, and approximately 75% of those sales would come from sauces, spreads and seasonings.

Kraft Heinz said the second new company would be a “scaled portfolio of North America staples” and would include items such as Oscar Mayer, Kraft singles and Lunchables. That company will have approximately $10.4 billion in 2024 net sales.

“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” said Miguel Patricio, executive chair of the board for Kraft Heinz. “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value.”

The deal that created Kraft Heinz in 2015 was the brainchild of Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital. While investors originally cheered the merger, the luster began to fade as the combined company’s U.S. sales faltered.

Then came a disclosure in February 2019 that Kraft Heinz had received a subpoena from the Securities and Exchange Commission related to its accounting policies and internal controls. The company also slashed its dividend by 36% and took a $15.4 billion write-down on Kraft and Oscar Mayer, two of its biggest brands. Days later, Buffett told CNBC that Berkshire Hathaway had overpaid for Kraft.

A leadership shakeup and more write-downs of iconic brands, like Maxwell House and Velveeta, followed. Kraft Heinz also began divesting some of its businesses, selling off most of its cheese unit to French dairy giant Lactalis and its nuts division, including the Planters brand, to Hormel.

In recent quarters, the company has invested in boosting some of its brands, like Lunchables and Capri Sun. Despite turnaround efforts, shares of Kraft Heinz have slid roughly 60% since the merger closed in 2015.

The split comes as more big food companies pursue breakups to divest from slower-growth categories and impress investors again.

In August, Keurig Dr Pepper announced that it will undo the 2018 deal that merged a coffee company with the 7 Up owner. Keurig Dr Pepper plans to separate after it closes its $18 billion acquisition of Dutch coffee company JDE Peet’s. And two years ago, Kellogg spun off its snacks business into Kellanova and renamed itself as WK Kellogg.

This post appeared first on NBC NEWS

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In Politics

Senate advances defense bill boosting service member pay, Pentagon reforms

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The Senate teed up a colossal package to authorize funding for the Pentagon on Tuesday, marking the first legislation to hit the floor since lawmakers returned from August recess.

Lawmakers advanced the Fiscal Year 2026 National Defense Authorization Act (NDAA) on a largely bipartisan 84 to 14 vote, setting up the bill for debate before a later vote to advance it from the Senate.

This year’s version of the bill isn’t as divisive as its predecessor, given the lack of provisions targeting ‘woke’ policies at the Pentagon, which became a major target for Republicans when they gained power in the House during the latter half of former President Joe Biden’s first term.

Instead, the measure focuses on military contracting reforms and lasers in on the Pentagon’s failure to complete, let alone pass, an audit for the last several years. It also includes a bump to service members’ pay, though not as high as in recent years. It also includes an extension to the Ukraine Security Assistance Initiative through 2028, and increases authorized funding to $500 million. 

Still, the measure would authorize about 3% more funding for the Pentagon when compared to last year’s NDAA in the midst of the GOP and White House’s push to cut costs in the government.

It also comes on the heels of a $150 billion injection of defense spending passed in President Donald Trump’s ‘big, beautiful bill.’

Senate Armed Services Committee Chair Roger Wicker, R-Miss., said after the bill glided through committee in July that the ‘United States is operating in the most dangerous threat environment we have faced since World War II.’

‘The bill my committee advanced today is a direct reflection of the severity of that threat environment, as well as the rapidly evolving landscape of war,’ he said. ‘My colleagues and I have prioritized reindustrialization and the structural rebuilding of the arsenal of democracy.’

And Sen. Jack Reed, the Democrat on the panel, similarly agreed that the U.S. ‘faces a global security environment unlike any in recent memory.’

‘This legislation invests in the service members, technology, and capabilities we need to deter our adversaries and defend our national interests,’ the Rhode Island Democrat said. ‘I thank Chairman Wicker and our colleagues on both sides of the aisle for advancing this bill to prioritize the safety and security of the American people.’

The Senate and House have offered competing versions of the bill, too. Lawmakers in the upper chamber leapfrogged their colleagues in the House, where their iteration of the NDAA is expected to be considered next week.

Overall, the Senate’s version of the legislation would tee up nearly $925 billion in defense spending. That total is split among the Department of Defense at over $878 billion, the Department of Energy at over $35 billion with another $10 billion allocated for ‘defense-related activities’ outside of the bill’s jurisdiction.

The House version of the bill clocked in at just over $848 billion, well below the Senate’s product but more in line with the Pentagon’s budget request for the upcoming fiscal year. 

This post appeared first on FOX NEWS

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In Stocks

Nestle CEO ouster: shares fall; doubts over Navratil’s strategy to weigh on sentiment

4 Mins Read

Nestle’s shares dropped nearly 3% as the markets opened on Tuesday after the Swiss food and beverage giant dismissed its chief executive, Laurent Freixe, following an internal probe into an undisclosed relationship with a subordinate.

However, the stock was able to recover some losses by 10 am, and was down by about 1.5% at 10:15 am.

The company said the affair breached its code of business conduct, prompting his immediate removal late on Monday.

The abrupt ouster deepened concerns over leadership instability at the Vevey-based group, which has now replaced its top executive twice in little over a year.

The latest upheaval comes as Nestlé continues to struggle with weak sales and persistent investor dissatisfaction with its shares, having lost almost a third of their value over the past five years.

Nestlé named Philipp Navratil, head of its Nespresso business since July 2024 and a company veteran since 2001, as the new chief executive.

Freixe’s leadership: a turbulent chapter for Nestlé

Freixe had been appointed only the previous year, following the sudden departure of long-serving Chief Executive Mark Schneider.

However, his brief tenure failed to stem Nestlé’s slide, with the group’s shares declining a further 17% during his leadership.

Maurizio Porfiri, chief investment officer at Maverix, said Freixe’s tenure was marked by delays in restructuring.

“Another fresh start is needed, and it is time for more stability to return to the management at this global corporation,” he told Reuters.

“The market did not particularly like Freixe, and the restructuring goals were also put on the back burner,” Porfiri added.

The turmoil comes just months after Nestle launched a review of its vitamins and supplements business, signalling that divestments could be on the horizon following disappointing first-half results.

“Nestle has received much unwanted scrutiny over the past 13 months after the departure of Freixe’s predecessor—also unexpected—and the poor share performance of the preceding 2.5 years,” Bernstein analysts wrote in a note.

Investor sentiment remains cautious

The latest change is likely to leave questions unanswered about Nestle’s mid-term direction and “keep a lid on the equity story until we hear more about Mr Navratil’s plan,” JPMorgan analysts said in a research note.

They added that the latest move was unlikely to reassure investors, noting that it was the second time in a year that the company had chosen a new chief without a wide search process.

They also cautioned that Navratil risked being “boxed in” by his predecessor’s turnaround plans at a time when the market remained unconvinced about the group’s prospects.

Bernstein also expressed concern that Navratil would inevitably seek to put his own stamp on strategy despite initially signalling alignment with the company’s current direction.

“This adds an element of uncertainty around the future direction of the business in the near term, which is unlikely to be helpful toward investor sentiment,” the analysts said.

Analysts hope for a ‘generational reset’ with Navratil’s appointment

At 48, Navratil represents a generational shift in leadership and will be tasked with restoring investor confidence in a company whose shares have lost almost a third of their value over the past five years.

Analysts at Baader Helvea described Navratil’s appointment, alongside the planned succession of chair Paul Bulcke by former Inditex executive Pablo Isla in 2026, as a long-awaited generational handover.

“We see Mr. Navratil’s appointment–born 1976–, together with the change at the chairman position next year with Mr. Pablo Isla as the real generational step that should probably have happened 12 months earlier,” Baader Helvea’s Andreas von Arx said.

He added that Navratil could bring fresh ambition to underperforming divisions such as frozen foods, infant nutrition, generic milk products, and water.

“The reasons for these issues seem structural, but Freixe’s view was that they were due to mismanagement,” the analyst says.

The post Nestle CEO ouster: shares fall; doubts over Navratil’s strategy to weigh on sentiment appeared first on Invezz

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In Politics

Former FBI Director Robert Mueller has Parkinson’s disease: report

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Former FBI Director Robert Mueller was diagnosed with Parkinson’s disease, his family revealed to the New York Times.

Mueller is the former special counsel who led the Russia investigation into President Donald Trump’s 2016 campaign.

Mueller, 81, was diagnosed in 2021 and retired from public life the following year after briefly teaching law, according to a family statement provided to The Times.

‘Bob was diagnosed with Parkinson’s disease in the summer of 2021. He retired from the practice of law at the end of that year. He taught at his law school alma mater during the fall of both 2021 and 2022, and he retired at the end of 2022,’ the statement said.

This post appeared first on FOX NEWS

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In Stocks

Europe markets open: Stocks to edge higher with DAX up 0.12% as US markets close

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A quiet and tentative optimism is gracing European markets at the start of the new trading week, with stocks poised for a slightly higher open on Monday.

This fragile calm comes after a turbulent end to the previous week and against a complex global backdrop, as investors digest conflicting economic signals from China and the lingering echo of a pivotal policy hint from the US Federal Reserve.

With US financial markets closed for the Labor Day holiday, Europe is left to set its own tone, and early indications point to a cautious but positive start.

Data from IG suggests Germany’s DAX and Italy’s FTSE MIB will both open around 0.12% higher, with France’s CAC 40 up 0.1%.

The Asian ambiguity: a conflicting signal from China

The session is unfolding against a mixed and somewhat confusing picture from the Asia-Pacific region. The key data point overnight was a set of dueling manufacturing reports from China.

The private RatingDog survey—formerly the Caixin PMI—showed a welcome return to expansion, with a reading of 50.5. However, the official government data, released on Sunday, remained in contraction territory at 49.4.

This divergence paints an ambiguous picture of the health of the world’s second-largest economy, leaving investors to wonder which signal to trust.

The diplomatic thaw: a new partnership in the east

On the geopolitical front, a more clearly positive narrative is emerging. Investors are continuing to assess the significant warming of relations between India and China.

Following a landmark meeting at the Shanghai Cooperation Organization summit, leaders from both nations agreed that they are “development partners, not rivals,” a major diplomatic breakthrough that could have long-term positive implications for regional stability and trade.

The shadow of the Fed: a dovish echo lingers

While the immediate economic calendar in Europe is light, the market is still very much operating in the shadow of last week’s events.

Regional markets closed lower on Friday as traders wrestled with a volley of inflation data.

But the week’s defining moment was a speech from Fed Chair Jerome Powell, which was widely interpreted as dovish-tilting and significantly stoked expectations for an interest rate cut at the central bank’s next meeting on September 16-17.

It is this prospect of easier monetary policy that is providing a quiet, underlying support for equities as a new and uncertain week begins.

The post Europe markets open: Stocks to edge higher with DAX up 0.12% as US markets close appeared first on Invezz

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Trump says he will require voter ID with executive order

2 Mins Read

President Donald Trump says he plans to sign an executive order aimed at requiring voter ID in elections across the country.

Trump made the statement on social media late Saturday night, saying he is also seeking other reforms to how U.S. elections take place.  

‘Voter I.D. Must Be Part of Every Single Vote. NO EXCEPTIONS! I Will Be Doing An Executive Order To That End!!! Also, No Mail-In Voting, Except For Those That Are Very Ill, And The Far Away Military. USE PAPER BALLOTS ONLY!’ Trump wrote on Truth Social.

Trump previously attempted to impose voter ID via an executive order earlier this year in a wider election integrity action.

In April, Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia struck down the portions of that order that related to voter identification requirements.

Kollar-Kotelly maintained that Trump did not have the authority to issue such an order, as the Constitution delegates control of election regulations to Congress and states.

‘Consistent with that allocation of power, Congress is currently debating legislation that would affect many of the changes the President purports to order,’ Kollar-Kotelly, a Clinton appointee, wrote in her order. ‘No statutory delegation of authority to the Executive Branch permits the President to short-circuit Congress’s deliberative process by executive order.’

Nevertheless, requiring voters to provide proof of citizenship remains widely popular among Americans, according to a poll from Gallup taken just before the 2024 elections.

The poll found that 84% of U.S. adults were in favor of requiring voters to show identification and 83% supported requiring proof of citizenship when registering for the first time. 

When broken down by party, 67% of Democrats, 84% of Independents and 98% of Republicans were in favor of mandating voter ID. The party breakdown over proof of citizenship was similar, with 66% of Democrats, 84% of Independents and 96% of Republicans supporting the idea.

Fox News’ Rachel Wolf contributed to this report

This post appeared first on FOX NEWS

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