Berkshire Hathaway to Acquire Precision Castparts
The boards of directors of Berkshire Hathaway Inc. and Precision Castparts Corp. (PCC) unanimously approved a definitive agreement for Berkshire Hathaway to acquire, for $235 per share in cash, all outstanding PCC shares. The transaction is valued at approximately $37.2 billion, including outstanding PCC net debt. PCC is the world leader in structural investment castings, forged components and airfoil castings for aircraft engines and industrial gas turbines. The transaction requires approval by a majority of PCC’s outstanding shares. Closing is expected to occur during the first quarter of calendar 2016. PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland, Ore.
According to a report on Investing.com, U.S. stocks rose broadly on Monday as the completion of Warren Buffett's largest acquisition ever and a rally in Apple Inc. shares bolstered all three major indices. Buffet’s Berkshire Hathaway completed his biggest deal ever on Monday with the acquisition of PCC. Shares in the Portland-based company surged more than 19% to an intraday high of $231.46, before closing at $231.00. PCC finished as the top performer on the S&P 500.