The company Berkshire Hathaway (Berkshire Hathaway) of the investor Warren Buffet buys for 32 billion dollars the manufacturer of industrial equipment and parts Precision Castparts (Precision Castparts Corp).
The announcement of the agreement ended several weeks of speculation about the intention of the legendary investor to buy the manufacturer of parts for spacecraft, power plants, the defense industry and other industrial sectors.
Berkshire will pay $235 in cash per outstanding share, and the entire deal, including debt, is worth about $37,2 billion.
Bershire Hathaway is known for major transactions, including purchases of shares in Kraft, Heinz, Coca-Cola, IBM, Wells Fargo and others. The business of that company also includes insurance, railways, services, clothing, furniture, jewelry, pilot training companies...
The precision casting company has big deals in the energy sector and is now being hit by low oil prices, which are near six-year lows.
Buffett told CNBC that he would buy the company and that he knows energy prices are in the middle of a multi-year decline.
"We're going to be in this business for 100 years, so it doesn't make any difference what happens to oil and gas next year," Buffett said.
The boards of directors of Precision Castparts and Bershire Hathaway have unanimously approved the transaction, which is expected to close in the first quarter of next year.
Shares of Precision Castparts rose by 19,8 percent to $232,25 before the stock market opened today.
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