“Out of the market for an ‘elephant’ for 12 months or so”. Those were the words of billionaire Warren Buffett after his investment firm Berkshire Hathaway snapped up Precision Castparts Corporation.
The deal for the aircraft components maker is valued at about 37.2 billion dollars, including debt and is one of the largest takeovers ever undertaken by Buffett at the company.
The acquisition represents a premium of 21.2 percent to PCC’s Friday close of 193.88 dollars per share.
Berkshire Hathaway said it expected the deal, which is subjected to PCC shareholder approval, to close during the first three months of next year.