Business
Kraft Heinz, Kellogg breakups show Big Food is getting smaller
Kraft Heinz announced plans to split into two separately traded companies, reversing its 2015 megamerger, which was orchestrated by billionaire investor Warren Buffett.
Justin Sullivan | Getty Images News | Getty Images
Big Food is slimming down.
As both consumers and regulators push back against ultra-processed foods, the companies that make them have been splitting up or divesting iconic brands. Last year, Unilever spun off its ice cream business into The Magnum Ice Cream Company. Kraft Heinz is preparing to break up later this year, undoing much of the merger forged more than a decade ago by Warren Buffett’s Berkshire Hathaway and private equity firm 3G Capital. And Keurig Dr Pepper is planning a similar split after it finishes its acquisition of JDE Peet’s.
In 2024, nearly half of mergers and acquisitions activity in the consumer products industry came from divestitures, according to consulting firm Bain. Over the next three years, 42% of M&A executives in the consumer products industry are preparing an asset for sale, a Bain survey found.
Of course, the trend isn’t confined to just the consumer packaged goods industry. Industrial companies like GE and Honeywell have pursued their own breakups in recent years. It’s happening too in legacy media; Comcast spun off many of its cable assets into CNBC owner Versant, while Warner Bros. Discovery is planning to spin off its cable networks later this year as Netflix acquires its streaming and studios division.
“In many of the spaces that we’re seeing this type of activity, there are many very fierce competitive pressures that are making it harder to operate,” said Emilie Feldman, a professor at The Wharton School at the University of Pennsylvania.
The squeeze on packaged food and beverage companies comes from lower demand, which has led to shrinking volume for many of their products. To turn around their businesses and win back investors, they are counting on dumping underperforming brands.
February will bring both quarterly earnings reports and presentations at the annual CAGNY Conference, offering investors more opportunities to hear about food executives’ plans for their portfolios. Companies to watch include Kraft Heinz, which could share more details on its upcoming split, and Nestle, which is considering selling off multiple brands in its portfolio.
Cases of Dr. Pepper are displayed at a Costco Wholesale store on April 27, 2025 in San Diego, California.
Kevin Carter | Getty Images
Shrinking sales
For more than a decade, consumers have been buying fewer groceries from the inner aisles of the grocery store, instead focusing on the outer aisles with fresh produce and protein. The pandemic served as the exception, as many consumers returned to the brands that they knew. However, price hikes and “shrinkflation” as life eased back to normal largely erased that shift in behavior.
More recently, regulators, emboldened by the “Make America Healthy Again” agenda espoused by Health and Human Services Secretary Robert F. Kennedy Jr., have put both more pressure and a bigger spotlight on processed foods. And the rise of GLP-1 drugs to combat diabetes and obesity have meant some of food companies’ key consumers have lost their appetite for the sweet and salty snacks that they used to eat.
As a percentage of overall spending, the consumer packaged goods industry has held onto its market share. But the biggest companies are losing customers to upstart brands or private-label products, according to Bain partner Peter Horsley.
On average, about 35% of large consumer products companies’ portfolios are in categories with more than 7% growth, Horsley said. For comparison, over half of private-label brands are in high-growth categories, like yogurt and functional beverages, and for insurgent brands, it’s even higher.
For Big Food, the result has been slowing — or even declining — sales, followed by stock declines. In some cases, activist investors push for companies to focus more on their core offerings and to offload so-called distractions.
“You’re seeing a lot of pressure from a valuation standpoint, especially for these publicly traded companies,” said Raj Konanahalli, partner and managing director of AlixPartners. “One way to reset expectations is to really kind of focus more on the core offerings and dispose or divest the slower, capital-intensive or non-core businesses.”
While getting bigger helped food companies develop scale, enter new markets and grow their sales, it also made their businesses much more complex, according to Konanahalli. Become too big, and it becomes too difficult to make decisions quickly or to decide how and where to invest back into the business.
To be sure, some of these divestitures and breakups follow deals that seem to have been ill-advised from the start. Look no further than the merger of Keurig Green Mountain and Dr Pepper Snapple Group in 2018, to form Keurig Dr Pepper.
“Frankly the surprise to us was the decision back in 2018 when Keurig Green Mountain acquired the Dr Pepper Snapple Group in an $18.7 billion deal to create Keurig Dr Pepper in the first place,” Barclays analysts Patrick Folan and Lauren Lieberman wrote in a note to clients in August when the breakup was announced. “At the time, it was seen as both odd and a very left field deal with the questionable logic of combining coffee and [carbonated soft drinks].”
(When the merger was announced in 2018, Lieberman said on a conference call with executives from both companies that she was still “scratching my head” about the logic of the deal for both players).
Shares of Keurig Dr Pepper have risen 37% since the merger. The S&P 500 has climbed 150% over the same period.
To sell or not to sell
Like many industries, the packaged food industry has gone through cycles of expansion and contraction, according to Feldman. For example, Kraft spun off a snacking business that includes Oreos into Mondelez in 2012, just three years before it merged with Heinz.
However, in recent years, expanding through acquisitions has required more sophisticated thinking and execution.
“If you go back to those glory years of pre-2015, the rules of the game in consumer products felt fairly simple, at least if you’re a global company,” Bain’s Horsley said. “You bought another company that was relatively similar to you. You integrated it together, you pulled out the cost synergies … and then that gave you good top-line and bottom-line growth. But the rules of the game have changed.”
Around 2015, upstarts like Chobani or BodyArmor began stealing market share from legacy brands. As a result, food giants needed to become more thoughtful about what they were acquiring and how they were managing their portfolios, according to Horsley.
For a cautionary tale, look no further than Kraft Heinz, formed by a mega-merger in 2015. Investors initially cheered the deal, but their enthusiasm waned as the combined company’s U.S. sales began lagging. Then came write-downs of many of its iconic brands, like Kraft, Oscar Mayer, Maxwell House and Velveeta, in addition to a subpoena from the Securities and Exchange Commission related to its accounting policies and internal controls.
With the benefit of hindsight, analysts and investors have blamed much of Kraft Heinz’s downward spiral on the brutal cost-cutting strategy imposed after the merger. The company’s leadership was too focused on slashing costs and not enough on investing back into its brands, particularly at a time when consumer tastes were changing.
Since Kraft Heinz began trading as one company, shares have tumbled 73%.
But not everyone is sold that getting rid of underperforming brands will benefit shareholders.
“If you don’t fix the underlying capability, it doesn’t matter how many brands you sell or don’t sell,” RBC Capital Markets analyst Nik Modi said. “They’re not addressing the root problem. It’s just something to make investors happy because it seems like they’re making a change.”
One breakup that Modi agrees with is that of Kellogg, which split into the snacks-focused Kellanova and cereal-centric WK Kellogg in 2023. Last year, chocolatier Ferrero snapped up WK Kellogg for $3.1 billion, while Mars closed its $36 billion acquisition of Kellanova.
From Modi’s perspective, the breakup created more value for shareholders than the combined business did. Kellogg’s high-growth snack business was much more viable as an acquisition target without the sluggish cereal division attached. Plus, the two strategic buyers are both privately held companies that don’t have to worry about sharing quarterly earnings with the public.
Some investors are hoping for the same outcome with Kraft Heinz.
“The view that many have had is the best way to create value is split the companies and hope that you can create a Kellanova 2.0 where both entities get acquired at some point down the line, and that’s where value creation happens,” said Peter Galbo, analyst at Bank of America Securities.
Kraft Heinz hired Steve Cahillane, the former CEO of Kellogg and then Kellanova, as its chief executive. Once the company separates, Cahillane will serve as chief executive of Global Taste Elevation, the placeholder name for the spinoff with high-growth brands like Heinz and Philadelphia.
Steve Cahillane, President and CEO, Kellogg Company accepts Salute To Greatness Corporate Award during 2020 Salute to Greatness Awards Gala at Hyatt Regency Atlanta on January 18, 2020 in Atlanta, Georgia.
Paras Griffin | Getty Images Entertainment | Getty Images
But acquiring either company resulting from the Kraft Heinz split would be a pretty big acquisition, making it less likely that either is snapped up, according to Galbo. And the resulting uncertainty about the value creation from the breakup is maybe why Berkshire Hathaway, the company’s largest shareholder, is preparing to exit its 27.5% stake in Kraft Heinz.
Food divestitures pick up
A month into the new year, it’s unlikely that the divestiture trend will slow down.
On Tuesday, General Mills announced that it is selling its Muir Glen brand of organic tomatoes to focus on its core brands. And last week, Bloomberg reported that Nestle is preparing the sale of its water unit; the Swiss giant is also reportedly considering offloading upscale coffee brand Blue Bottle and its underperforming vitamin brands.
And if Big Food is making any acquisitions, the deals are more likely to involve “insurgent brands,” according to Bain. Over the last five years, acquisitions with a value of less than $2 billion represented 38% of total consumer products deals, up from 16% in the period from 2014 to 2019, the firm said. For example, last year, PepsiCo bought prebiotic soda brand Poppi for $1.95 billion and Hershey snapped up LesserEvil popcorn for $750 million.
Bigger deals are harder to come by because of the current regulatory environment, Konanahalli said. Buyers might not be strategic players, but instead private equity firms with plenty of cash on hand. For example, in January, L Catterton bought a majority stake in cottage cheese upstart Good Culture.
But a flashy divestiture or acquisition might not be the solution to a food conglomerate’s woes — or a surefire way to lift the stock price. Sometimes, good old-fashioned elbow grease can work even better.
“Just because it seems like the wind is blowing your way, it doesn’t mean that you can’t put in some hard work and turn things around,” AlixPartners’ Konanahalli said.
Larissa Manoela and Josh D’Amaro, Chairperson of Walt Disney Parks and Resorts, wave to the audience after Panel Disney Experiences during Day 2 of the D23 Brazil: A Disney Experience at Transamerica Expo Center on November 09, 2024 in Sao Paulo, Brazil.
Ricardo Moreira | Getty Images
Disney is turning the page on a new chapter as Josh D’Amaro steps in as CEO of the media and theme park powerhouse.
D’Amaro most recently served as chairman of Disney Experiences, which includes the company’s theme parks, cruise line, resorts and consumer products. He will officially succeed Bob Iger as chief executive during the company’s annual shareholder meeting on Wednesday.
The longtime Disney executive takes over after a period of uncertainty for the century-old company — including a closely watched succession race and a recent reorganization and turnaround — that has left it with a mixed reception from Wall Street.
Disney’s stock is down more than 10% year to date as of Tuesday’s close.
D’Amaro’s most immediate task will be sustaining momentum in Disney’s core growth areas. The company’s most recent quarterly earnings were lifted by its theme parks and streaming, the two areas that remain in focus for investors, industry peers and consumers alike.
The company has recently embarked on a major investment in its theme parks, including an expansion with an Abu Dhabi theme park and resort, and has seen its streaming business reach consecutive quarters of profitability.
Disney also returned to the top of the box office with hits like “Lilo & Stitch,” “Zootopia” and “Avatar” in 2025.
Welcome wagon
In this handout image provided by Disneyland Resort, Disney Experiences Chairman Josh D’Amaro and The Walt Disney Company Chief Executive Officer Bob Iger speak during the 70th anniversary celebrations of Disneyland Resort on July 17, 2025 in Anaheim, California.
Handout | Getty Images Entertainment | Getty Images
This is the second time Iger handed over the reins to a successor in roughly six years. He will remain as a Disney senior advisor and board member until he retires from the company on Dec. 31.
The storied CEO led Disney for roughly 20 years over the course of two stints at the top. In his first 15 years Iger was responsible for some of its biggest acquisitions like Marvel and Fox’s entertainment assets, as well as the launch of Disney+.
He stepped down in 2020, but his time away from the company was capped at two years following a handoff to Bob Chapek that was rife with drama.
In Disney’s February announcement of D’Amaro’s appointment, Iger called D’Amaro an “exceptional leader and the right person to become our next CEO.”
D’Amaro, 55, has been at Disney since 1998 and has held a variety of roles at the company. Under his leadership, Disney’s theme parks division has blossomed into a driving force and an earnings driver.
GSK Expanding Fast – Oncology, HIV, And Smart Acquisitions
Mr Arunangshu Das is a software engineer, a finance and billing architect, and an active investor and entrepreneur. He is developing Tranzoro Investments to fill a critical lacunae – to help US investors understand Indian markets, and Indian investor understand US markets. For the former, he will cover liquid and well-known India-focused ETFs and ADRs. However, he will focus more on the latter, and cover all sorts of US equities, ETFs, REITS and so on.Mr Das is an income+growth focused investor.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
GeoPark: Take The Profits
In an exchange filing, Axis Bank said the investment will be made in cash in one or more tranches before March 31, 2027, by subscribing to Axis Finance’s rights issue. This comes amid a broader strategic rethink after India’s third-largest lender paused plans to sell a stake in the non-bank finance company (NBFC).
Axis Bank had initiated the stake sale process last year and appointed merchant bankers, including Morgan Stanley, after the Reserve Bank of India (RBI) proposed draft rules in 2024 restricting overlapping business activities between banks and their subsidiaries. However, the RBI diluted the proposal in December last year following industry pushback, leading Axis Bank to pause the stake sale plans, according to a report in January.
Also Read | Planning your MF investment for FY27? Experts advice flexicap, multi-cap with gold & silver ETF exposure
Axis Finance, incorporated in April 1995 and registered as an NBFC, has seen steady growth in recent years, with turnover rising to Rs 4,296 crore in FY25 from Rs 3,321 crore in FY24 and Rs 2,297 crore in FY23. The company’s turnover for the half year ended FY26 stood at Rs 2,504 crore.
Axis Bank, which has invested Rs 2,375 crore in Axis Finance over the past decade, will review the NBFC’s growth roadmap next month. The subsidiary is set to present a revised plan to the bank’s board in April, after which Axis Finance will reassess its capital-raising needs. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Axis Bank share price rose more than 2.5% to Rs 1,259.30 apiece on Wednesday, extending gains for the third consecutive session. It is currently among the top gainers on benchmark indices Sensex and Nifty, as well as the Nifty Bank index.
(With inputs from Reuters)
Business
Rupee hits historic low, slips past 92.62 vs USD as Middle East tensions keep energy worries in focus
The rupee fell to 92.62 per dollar, eclipsing its previous low of 92.4750 hit last week.
Brent crude oil prices have climbed about 40% since the Iran War began. The conflict has since sent shockwaves throughout global markets as energy importing economies grapple with the most severe supply disruption in decades.
Selena Gomez, the multifaceted actress, singer and entrepreneur, continues to captivate fans with glimpses of her personal life and professional ventures, even as she opts out of Hollywood’s biggest nights this spring.
In recent days, the 33-year-old star has shared affectionate photos with her husband, music producer **Benny Blanco**, brushing aside minor public controversies while promoting her booming beauty brand, Rare Beauty. The couple, who married in an intimate ceremony in Santa Barbara, California, in September 2025, appear stronger than ever, posting cozy beach embraces and loving tributes that highlight their newlywed bliss.
On Saturday, Gomez uploaded a carousel of images to her Instagram, showing Blanco embracing her tightly against a scenic backdrop. The post came shortly after a lighthearted “filthy feet” drama involving Blanco went viral, with fans playfully critiquing his casual appearance in earlier photos. Gomez responded in jest by sharing videos of herself playfully kissing his feet, turning the moment into a display of unwavering support and humor. “My love,” she captioned one tribute around Blanco’s 38th birthday earlier this month, including snapshots from their wedding day and recent outings.
The pair celebrated Blanco’s birthday with a star-studded cowboy-themed bash, underscoring their close-knit circle in the entertainment industry. Gomez has been vocal about her affection, appearing on Blanco’s podcast “Friends Keep Secrets” to discuss their relationship openly.
Professionally, Gomez remains focused on her empire beyond the spotlight. Rare Beauty, her inclusive cosmetics line launched in 2020, announced a major new product: the True to Myself Natural Matte Longwear Foundation, available in 48 shades. Gomez revealed she has been wearing the self-priming, self-setting formula for months — from her wedding to red carpets and quiet home days — and teased its release on Instagram. “I’ve waited a long time to share it with you, and I’m SO excited,” she wrote. The foundation drops April 2 at Sephora and rarebeauty.com, with early access via the Sephora app on April 1.
Adding to the brand’s momentum, Rare Beauty recently expanded to all Ulta Beauty stores, with in-store donations this month supporting mental health initiatives through the Ulta Beauty Charitable Foundation and the Rare Impact Fund. Gomez expressed delight at the partnership, marking a first for Ulta with a brand collaboration of this kind.
Gomez’s decision to skip the 2026 Academy Awards — held March 15 — drew attention, as she and Blanco attended the previous year’s ceremony. Sources indicate Gomez had no eligible film projects this awards cycle and was not invited as a presenter. Instead, she spent the weekend promoting Rare Beauty in New York City, sharing selfies and event glimpses on her Instagram Stories. The couple also missed the 2026 Grammys in February, despite a nomination for their collaborative track “Bluest Flame” in the Best Dance Pop category. Gomez prioritized a Rare Beauty x Ulta event that day.
Her acting career continues to thrive, particularly with her role in the hit Hulu series “Only Murders in the Building,” where she stars alongside Steve Martin and Martin Short. Gomez recently posted a poignant message affirming her support for her co-stars amid personal challenges, writing she’ll “always be there” for them. She has also reflected on her health journey, sharing in interviews that she was misdiagnosed before receiving her bipolar diagnosis, calling the process “so f—ing complicated.”
Gomez’s personal evolution remains inspiring. From her Disney roots in “Wizards of Waverly Place” to global music success with albums like “Rare” and advocacy through Wondermind — her mental health platform — she balances vulnerability with empowerment. Recent posts include faith-inspired captions like “by Grace through Faith” and nods to new music, with tracks such as “In The Dark” and “I Said I Love You First…And You Said It Back” generating buzz.
Fans speculate about future projects, including potential returns to music or expansions in production. A March milestone post highlighted her transformation into a business powerhouse, with Rare Beauty reportedly eyeing significant valuation growth and positioning her as a major player in beauty and wellness.
Through it all, Gomez maintains a grounded presence online, sharing “randoms” and “lately” moments that blend glamour with authenticity. As she and Blanco navigate life as a married couple, their public displays of affection — from beach cuddles to playful responses to tabloid fodder — serve as a reminder of her enduring appeal: a star who prioritizes love, mental health and meaningful work over constant red-carpet appearances.
With Rare Beauty’s latest innovations rolling out and her personal life radiating positivity, Selena Gomez shows no signs of slowing down. Her fans, numbering over 415 million on Instagram alone, eagerly await what’s next from one of entertainment’s most resilient and influential figures.
Close Brothers has announced plans to cut around 600 job, equivalent to roughly a fifth of its workforce, as the lender accelerates a sweeping cost-cutting programme in response to mounting pressure from the motor finance mis-selling scandal.
The restructuring, confirmed by chief executive Mike Morgan, will reduce headcount to approximately 2,000 over the next 21 months and is intended to restore investor confidence following renewed scrutiny of the group’s potential compensation liabilities. The move comes amid heightened market volatility after short-seller Viceroy Research claimed the lender’s total compensation bill could reach as high as £1.23 billion, far exceeding the company’s current £300 million provision.
Shares in Close Brothers have come under sustained pressure, falling sharply at the start of the week and continuing to slide as investors digested the scale of potential exposure. The lender is widely regarded as one of the most exposed UK financial institutions to the car finance scandal relative to its size, with motor loans accounting for around £2 billion of its £9.5 billion loan book.
The scandal, which first emerged two years ago, centres on the failure of lenders to adequately disclose commission arrangements paid to car dealers for arranging finance. The Financial Conduct Authority is expected to set out its final redress scheme imminently, with earlier estimates suggesting the total industry bill could reach £11 billion.
Morgan defended the bank’s approach to estimating its liabilities, insisting that its £300 million provision reflects a probability-weighted assessment in line with accounting standards and supported by legal and audit advice. However, the refusal to disclose detailed assumptions behind that figure has fuelled scepticism among investors and opened the door for more aggressive external estimates.
The chief executive dismissed Viceroy’s analysis but acknowledged the uncertainty surrounding the final outcome. He said the eventual cost could be “materially higher” or “materially lower” depending on how the regulator structures compensation and how many borrowers come forward with claims.
Against this backdrop, Close Brothers is moving aggressively to reshape its cost base. The group has already divested its Winterflood broking arm and its asset management business, scaled back growth plans and suspended its dividend in an effort to conserve capital. The latest measures will focus on streamlining operations across its core divisions, including retail lending and commercial finance, where the bulk of job losses are expected to fall.
The restructuring will incur an upfront cost of around £25 million but is expected to deliver annual savings of £60 million by the end of 2027. The company said it would centralise shared services, reduce reliance on third-party providers and cut property and operational expenses as part of a broader efficiency drive.
Artificial intelligence is also set to play a growing role in the transformation, with the bank aiming to deploy AI tools “at pace” to reduce costs and improve customer experience. The move reflects a wider trend across the financial services sector, where firms are increasingly turning to automation and digitalisation to offset rising regulatory and operational pressures.
Despite the cost-cutting programme, Close Brothers reported a mixed set of interim results. The group posted a statutory loss of £65.5 million for the six months to January, an improvement on the £102.2 million loss recorded a year earlier. Adjusted operating profit fell to £65.2 million, down from £80.5 million, reflecting ongoing headwinds.
Its core capital ratio improved to 14.3 per cent, comfortably above regulatory requirements, providing some reassurance on balance sheet strength. However, analysts warn that a significantly higher compensation bill could erode that buffer and materially impact shareholder value.
The situation has drawn comparisons with the payment protection insurance (PPI) scandal, which ultimately cost UK banks more than £50 billion, far exceeding initial provisions and leaving investors wary of underestimating liabilities in mis-selling cases.
Morgan insisted that lessons from the PPI episode had informed the bank’s current approach, arguing that regulatory scrutiny and accounting standards are now far more rigorous. Nonetheless, the combination of regulatory uncertainty, investor scepticism and operational restructuring highlights the scale of the challenge facing the lender.
With the FCA’s final ruling imminent and market confidence fragile, Close Brothers is entering a critical period that will determine both the ultimate financial impact of the scandal and the success of its efforts to rebuild credibility with shareholders.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
A significant ownership shift has taken place at The Economist Group after Canadian billionaire Stephen Smith agreed to acquire a 26.9 per cent stake from Lynn Forester, Lady de Rothschild, marking the first major change in the publisher’s shareholder structure in more than a decade.
Smith, 74, is purchasing the stake through his family investment vehicle, Smith Financial, in a deal that underscores continued global investor confidence in one of the world’s most influential media brands. While financial terms have not been disclosed, the transaction represents a notable reshaping of the group’s ownership, with the Rothschild family exiting a long-held position.
The move follows the last major ownership change in 2015, when Pearson sold the majority of its 50 per cent holding to the Agnelli family’s investment company, Exor, which today remains the largest shareholder with a 43.4 per cent stake. Smith’s investment now positions him as one of the most significant minority shareholders alongside Exor, reinforcing a shareholder base that blends long-term strategic investors with a commitment to editorial independence.
Founded in 1843, The Economist Group has built its reputation on championing free trade, liberal economics and independent journalism. That editorial positioning has historically shaped its ownership model, with shareholders often selected not only for financial backing but for alignment with the publication’s values and governance principles.
A spokesperson for Smith confirmed that the investment reflects his “full support for The Economist’s longstanding tradition of rigorous editorial independence”, a key consideration in any change of ownership at the publication. Maintaining that independence is central to the group’s structure, with safeguards embedded in its governance to ensure editorial decisions remain insulated from shareholder influence.
Lady de Rothschild’s decision to sell is understood to be part of a broader reorganisation of her family’s investment portfolio. A prominent figure in international finance and philanthropy, she co-founded telecoms business FirstMark Communications and has held senior roles including a position on the board of Estée Lauder. Alongside her late husband, Sir Evelyn de Rothschild, she also built EL Rothschild, a family office with interests spanning private equity, public markets and real estate.
Smith, meanwhile, brings deep experience in financial services and investment. He co-founded First National Financial Corporation in 1988, building it into one of Canada’s largest non-bank mortgage lenders, and stepped down from its board in 2025. His wider portfolio includes chairmanship roles at Peloton Capital Management, proxy advisory firm Glass, Lewis & Co, and Fairstone Bank of Canada, a major consumer lending institution.
Beyond business, Smith is also known for his philanthropic activity, particularly in education, heritage and the arts, areas that align with The Economist Group’s broader intellectual and cultural influence.
The Economist Group confirmed the agreement, noting that completion remains subject to standard closing conditions. The company did not comment on valuation but emphasised continuity in its strategic direction and governance framework.
The transaction comes at a time when premium media brands continue to attract high-net-worth investors seeking exposure to trusted global content platforms with diversified revenue streams, including subscriptions, events and specialist research services.
For The Economist, the arrival of a new cornerstone investor signals stability rather than disruption. With its ownership model designed to prioritise long-term stewardship over short-term returns, the addition of Smith Financial is expected to reinforce the group’s financial resilience while preserving the editorial principles that have defined it for more than 180 years.
Amy Ingham
Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.
Its Centre for Enterprise helps local SMEs turn ideas into innovation
Longer days are officially here with crucial change
Disney’s Josh D’Amaro becomes CEO as company embarks on new chapter
30 Years Later, This Michael Bay Action Epic Still Holds Up As His Best Film
-
Crypto World4 days agoHYPE Token Enters Net Deflation as HyperCore Buybacks Outpace Staking Rewards
-
Fashion5 days agoWeekend Open Thread: Addict Lip Glow
-
Tech3 days agoYour Legally Registered ‘Motorcycle’ Might Not Count Under Proposed US Law
-
Sports4 days ago
Why Duke and Michigan Are Dead Even Entering Selection Sunday
-
Sports7 days agoPWHL, Senators discussing plan to keep Charge in Ottawa
-
NewsBeat7 days agoResidents reaction as Shildon murder probe enters second day
-
Business3 days agoSearch for Savannah Guthrie’s Mother Enters Seventh Week with No Arrests
-
Business4 days agoUS Airports Launch Donation Drives for Unpaid TSA Workers as Partial Government Shutdown Enters Fifth Week
-
Tech19 hours agoAre Split Spacebars the Next Big Gaming Keyboard Trend?
-
Crypto World4 days ago
Coinbase and Bybit in Investment Talks: Could Bybit Finally Enter the US Crypto Market?
-
NewsBeat7 days agoI Entered The Manosphere. Nothing Could Prepare Me For What I Found.
-
Business4 days agoCountry star Brantley Gilbert enters growing non-alcoholic beer market
-
Business2 days agoAustralian shares drop as Iran war enters third week
-
Crypto World2 days agoCrypto Lender BlockFills Enters Chapter 11 with Up to $500M in Liabilities
-
Sports5 days agoCollege Basketball Best Bets: Conference Tournament Semifinal Picks
-
Crypto World6 days agoThree Binance Charts May Be Hinting at Bitcoin’s Next Move
-
Politics2 hours agoThe House | The new register to protect children from their abusers shows Parliament at its best
-
Business6 days agoTrump demands Powell cut rates as Iran conflict raises energy prices
-
Crypto World6 days agoSenate Votes to Include CBDC Ban in Bipartisan Housing Bill
-
Fashion2 days ago25 Celebrities with Curly Hair That Are Naturally Beautiful
You must be logged in to post a comment Login