Phillips 66 ( PSX ), an energy manufacturing and logistics company, said Tuesday it has agreed to repurchase 35 million shares of its common stock from a subsidiary of Berkshire Hathaway ( BRK.A ) at a price of $93.725 per share, or for a total of $3.3 billion.
The deal is expected to close on Feb. 14. Upon closing, the company will have 466.5 million shares outstanding, of which Berkshire will have a stake in 45.7 million shares.
"This transaction benefits all of our shareholders, as it is immediately accretive to earnings per share and positive for valuation," Phillips CEO Greg Garland said.
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10%," Berkshire Chairman Warren Buffett said. "We remain one of Phillips 66's largest shareholders and plan to continue to hold the stock for the long term."
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