Berkshire Hathaway Reported To Engage In Its Biggest Deal Ever For Precision Castparts
Mid-day Saturday Dow Jones reported Berkshire Hathaway is nearing a deal for Precision Castparts Corp. (NYSE: PCP).
The deal could be valued at $30 billion and may be announced this coming week, the outlet reported. According to Mergent Online, Precision Castparts "is a manufacturer of metal components and products, provides investment castings, forgings, fasteners/fastener systems and aerostructures for aerospace and power applications."
More simply, the company manufactures aircraft compents and various equipment used for energy production.
The reported deal follows one made last month by Precision in which the company purchased Noranco Inc from MidOcean for $560 million. The Noranco deal will help to strengthen Precision's position in the aerospace market as Naranco supplies premium compents, both machined and fabricated, for airplane engines and landing gear.
Berkshire's reported $30 billion deal for Precision Castparts comes in a year loaded with M&A activity. J.P. Morgan data reveals 2015 is projected to be M&A market's most active year (in dollar terms) in 20 years. As a percentage of GDP, activity is expected to hit its highest level since before the Great Recession.
If the news comes to fruition, Buffett's latest deal could potentially be the largest in Berkshire's history and the biggest of '15.
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