Berkshire Hathaway Inc. BRK/A is acquiring Phillips Specialty
Products Inc. (PSPI), a flow improver business, from Phillips 66 PSX.
In exchange for the share capital of the wholly owned subsidiary, Phillips 66
will receive shares of Phillips 66 common stock currently held by Berkshire
Hathaway. The specific number of shares will be determined by the share price
at deal closing.
“I have long been impressed by the strength of the Phillips 66 business
portfolio,” commented Warren E. Buffett, Berkshire Hathaway chief executive
officer. “The flow improver business is a high-quality business with
consistently strong financial performance, and it will fit well within
Berkshire Hathaway. I plan to have James L. Hambrick, CEO of The Lubrizol
Corporation, oversee its strategic direction.”
PSPI leads the science of drag reduction and specializes in developing
polymers to maximize the flow potential of pipelines. This transaction is part
of Phillips 66's ongoing portfolio management and supports the company's
growth strategy.
“Berkshire Hathaway made a strong offer for our high-performing flow improver
business,” said Greg Garland, Chairman and CEO of Phillips 66. “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.
About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business activities
including property and casualty insurance and reinsurance, utilities and
energy, freight rail transportation, finance, manufacturing, retailing and
services. Berkshire's common stock is listed on the New York Stock Exchange,
trading symbols BRK.A and BRK.B.
About Phillips 66
Built on more than 130 years of experience, Phillips 66 is a growing energy
manufacturing and logistics company with high-performing Midstream, Chemicals,
Refining, and Marketing and Specialties businesses. This integrated portfolio
enables Phillips 66 to capture opportunities in the changing energy landscape.
Headquartered in Houston, the company has 13,500 employees who are committed
to operating excellence and safety. Phillips 66 had $51 billion of assets as
of Sept. 30, 2013. For more information, visit www.phillips66.com or follow us
on Twitter @Phillips66Co.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This news release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by the safe harbors created thereby. Words and phrases such as “is
anticipated,” “is estimated,” “is expected,” “is planned,” “is scheduled,” “is
targeted,” “believes,” “intends,” “objectives,” “projects,” “strategies” and
similar expressions are used to identify such forward-looking statements.
However, the absence of these words does not mean that a statement is not
forward-looking. These forward-looking statements are based on management's
expectations, estimates and projections on the date this news release was
prepared. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to
predict. Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements. Economic,
business, competitive and/or regulatory factors affecting Phillips 66 and
Berkshire Hathaway are generally set forth in each company's filings with the
Securities and Exchange Commission. Neither Phillips 66 nor Berkshire Hathaway
is under an obligation (and expressly disclaim any such obligation) to update
or alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
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