In February 2019, the US-based Food and Beverage (F&B) company, Kraft Heinz Company (Kraft Heinz) announced an impairment of US$ 15 billion, cut its dividend by a third, and said that American authorities had launched an inquiry into its procurement practices. Furthermore, the company’s share price was observed to have fallen by 45% in the previous 12 months.

Kraft Heinz was formed through a merger in 2015 between Kraft Foods Group, Inc. (Kraft) and H. J. Heinz Company (Heinz). The merger was expected to provide significant synergy benefits that included growth in North America and global expansion, by combining Kraft’s brands with Heinz’s international platform (See Exhibit I). Following the merger, a number of measures were taken to cut costs and several employees were laid off. . ...

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