By Dow Jones Business News,
December 30, 2013, 05:58:00 PM EDT
By Anna Prior
Warren Buffett's Berkshire Hathaway Inc. (BRKA, BRKB) is acquiring Phillips Specialty Products Inc. from energy and
refining company Phillips 66 ( PSX ) in a stock deal.
Phillips 66 will receive common stock currently held by Berkshire in exchange for share capital of Phillips Specialty
Products, a wholly owned subsidiary of Phillips 66, the companies said Monday. The specific number of shares will be
determined by the share price at the deal's closing, which is expected in the first half of 2014, according to the
Phillips Specialty Products specializes in developing polymers to maximize the flow potential of pipelines.
"I have long been impressed by the strength of the Phillips 66 business portfolio," said Mr. Buffett, calling the flow
improver business a "high-quality business with consistently strong financial performance."
Meanwhile, on Phillips 66's end, the deal is part of the energy company's ongoing portfolio management. Phillips 66
Chief Executive Greg Garland said that Berkshire "made a strong offer" for the business.
Monday's announcement is the latest deal for Berkshire, the Omaha, Neb., conglomerate, which has large insurance
operations and also owns a railroad, power plants, and apparel makers.
Berkshire in November reported its third-quarter profit rose 29%, benefiting from strengthening demand in the housing,
railroad and consumer markets.
The company's class B shares edged up three cents to $118.07 in recent after-hours trading, while Phillips 66's shares
added nine cents to $74.81.
Write to Anna Prior at email@example.com
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