Kraft Heinz plans to split into two companies, reversing the $46 billion merger that created one of the world’s largest food companies. The first company will focus on shelf-stable meals like Heinz and Kraft mac and cheese, while the second will include staples like Oscar Mayer and Kraft singles. The split is expected to close in the second half of 2026.

The decision to split comes after Kraft Heinz faced challenges following a decline in U.S. sales and a subpoena from the SEC related to accounting policies. The company also slashed its dividend and took a $15.4 billion write-down on brands like Kraft and Oscar Mayer. Despite efforts to turn around the business, shares have dropped 60% since the merger in 2015.

Current Kraft Heinz CEO Carlos Abrams-Rivera will head the new grocery staples company, while an executive search firm will find a CEO for the other company. The split reflects a trend among food companies to divest from slower-growth categories and boost investor confidence. Keurig Dr Pepper and Kellogg are among those pursuing similar breakups in recent years.

Read more at CNBC: Kraft Heinz to split into two companies