Berkshire Hathaway, under new CEO Greg Abel, has taken steps to unwind Warren Buffett’s investment in Kraft Heinz. The conglomerate registered its 27.5% stake in Kraft Heinz, signaling a potential exit. Shares fell 5% in premarket trading. The move reflects Abel’s willingness to move on from Buffett’s rare misstep.

Kraft Heinz shares have fallen 70% since the 2015 merger, leading Berkshire to take a $3.8 billion writedown last year. Buffett has expressed frustration with the merger’s outcome. The conglomerate’s registration statement allows flexibility to reduce the position, not necessarily indicating an imminent sale, according to Stifel analysts.

Kraft Heinz plans to split into two companies, focusing on different product categories. Berkshire teamed up with 3G Capital in 2015 to merge Kraft Foods with H.J. Heinz. 3G Capital exited its Kraft Heinz investment in 2023. Stifel reiterated a hold rating on Kraft Heinz, citing soft U.S. consumption trends and slow growth in emerging markets.

Read more at CNBC: Berkshire set to exit 28% stake in Kraft Heinz after rare Buffett blunder