OMAHA and HOUSTON -- Berkshire Hathaway Inc. is acquiring Phillips Specialty Products Inc., a flow improver business, from Phillips 66, according to a news release.
In exchange for the share capital of the wholly owned subsidiary, Phillips 66 will receive shares of Phillips 66 common stock now held by Berkshire Hathaway. The specific number of shares will be determined by the share price when the deal closes.
"(Phillips 66's) flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway," Warren E. Buffett, Berkshire Hathaway CEO, said in a statement. "I plan to have James L. Hambrick, CEO of The Lubrizol Corporation, oversee its strategic direction."
Phillips Specialty Products develops polymers to maximize the flow potential of pipelines. The transaction is part of Phillips 66's ongoing portfolio management and supports the company's growth strategy, according to the release.
"Berkshire Hathaway made a strong offer for our high-performing flow improver business," Greg Garland, chairman and CEO of Phillips 66, said in the release. "This transaction optimizes our portfolio and focuses growth on our Midstream and Chemicals businesses."
Following regulatory review, the transaction is expected to close in the first half of 2014.
Berkshire Hathaway and its subsidiaries engage in diverse business activities ranging from insurance to energy to transportation. Its common stock is listed on the New York Stock Exchange under the symbols BRK.A and BRK.B.
Phillips 66 is a growing energy manufacturing and logistics company with chemicals, refining, and marketing and specialties businesses. The company is headquartered in Houston.
Business Wire contributed.
Most Popular Stories
- Fed Committee Optimistic About Growth Prospects
- U.S. Immigration Courts Facing Record Backlog
- Drive-In Movie Theaters Use Creativity to Afford Digital Switch
- Obama Cites Letter Writers in Pitching Economy
- Stevie Fielder Changes Tune on Thad Cochran Vote-buying Story
- Pau Gasol Turns Down Lakers' Offer
- Pot's Legal in WA -- But You Should Probably Ask Your Boss
- How ESPN Became a $50B Sports Empire
- Farrell, Kitsch Rumored for Season 2 of 'True Detective'
- President Obama Relishes Roadshow, but Agenda Still Stuck