Heinz bought by Berkshire Hathaway; American / US Airways combine

Skies may be less crowded; and the ketchup will still be tasty - no matter how unappealing this guy makes it look

Skies may be less crowded; and the ketchup will still be tasty – no matter how unappealing this guy makes it look

Two major deals broke today — Berkshire Hathaway acquiring Heinz and American airlines merging with US Airways.

In many previous deals like these, one or more cities were affected – often with the smaller city coming out on the bottom.  Could that happen again here?

The Largest Airline Takes Flight – from where though?

According to analysts, the airline merger has negative implications for several airports – but this time, they’re naming the big city airports, including Chicago’s O’Hare and Dallas-Fort Worth – two of the busiest airports in the country, both of which are hubs for American Airlines.  Pittsburgh is not listed as endangered as it was already de-hubbed by US Airways in the merger with America West – after Doug Parker took over.  He’ll be running the newly combined American Airlines as well.

Although I’ve been vocally disappointed by US Airways in the past, I’m impressed that this morning, only hours after the boards of both airlines voted to approve the merger, Mr. Parker sent out an email to US Airways’ frequent flyer participants, announcing the merger and setting the expectations for their best customers.  Smart move.

Spicy Acquisition For a Savvy Investor

Warren Buffet and Charlie Munger of Berkshire Hathaway have a track record of investing lots of money into the companies they acquire and letting the management teams continue on course.  So the effects of Berkshire’s acquisition of Heinz may have a lower human toll.  But I can’t help but thinking about what it might mean strategically if other Berkshire holdings started working more closely with Heinz…  Mail-in offers for Pampered Chef cooking tools when you send in mustard labels?  GEICO insurance against bad recipes?

Here is a list of companies owned by Berkshire Hathaway.  What are your suggestions for interesting marketing combinations?

Heinz Timeline

 

 

 

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