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| Warren Buffett's Berkshire Hathaway buys Precision Castparts | Warren Buffett's Berkshire Hathaway buys Precision Castparts |
| (about 2 hours later) | |
| Warren Buffett's investment firm Berkshire Hathaway has agreed to buy aircraft components manufacturer Precision Castparts Corp (PCC) in a deal worth $37.2bn (£24bn). | |
| Mr Buffett said he had "admired PCC's operation for a long time". | Mr Buffett said he had "admired PCC's operation for a long time". |
| Berkshire Hathaway said it expected the deal, which is subject to PCC shareholder approval, to close during the first three months of next year. | Berkshire Hathaway said it expected the deal, which is subject to PCC shareholder approval, to close during the first three months of next year. |
| If the deal goes through, it would be the biggest buy-out Berkshire has made. | |
| "For good reasons, [PCC] is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports," Mr Buffett said. | "For good reasons, [PCC] is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports," Mr Buffett said. |
| "Berkshire's board is proud that PCC will be joining [us]." | "Berkshire's board is proud that PCC will be joining [us]." |
| Talking to US media, he added: "When you get a chance to buy a wonderful company, there is usually some reason why you are getting that chance and perhaps a slump in oil and gas helps us in this case". | |
| The oil price has fallen by more than 50% in the past 12 months, reducing demand for components in some industries, not least oil and gas exploration. | |
| The price being paid represents $235 a share, compared with Friday's closing price of $194. | |
| Mark Donegan, PCC chief executive, said the deal offered "compelling and immediate value for our shareholders". | Mark Donegan, PCC chief executive, said the deal offered "compelling and immediate value for our shareholders". |
| Analysts said the deal was likely to go ahead. | |
| "Although the takeout price looks a little low to us, we doubt if PCC's shareholders will say no to Warren Buffett, especially given the year-to-date performance in a tough equity market," said Robert Stallard from RBC Capital Markets. | |
| In the past 12 months, shares in PCC have fallen almost 30%. | |
| The company makes complex metal components for the aerospace, power and industrial sectors. |