Buffett’s Berkshire approaches Precision Castparts agreement, according to WSJ – Yahoo Finance Spain

(Reuters) – Berkshire Hathaway Inc, headed by Warren Buffett, is nearing a deal to buy Precision Castparts Corp, in what could be the largest acquisition Company in its history, the Wall Street Journal, citing people familiar with the matter said on Saturday.

The purchase of Precision Castparts, which manufactures aircraft components and equipment for energy production, could be announced next week and cost more than 30,000 million dollars (27.344 million euros), assuming the typical premium for mergers, the newspaper said.

The market value was 26,700 Precision Castparts million until Friday.

Precision Castparts Berkshire and were not immediately available for comment.

Berkshire is one of the largest shareholders of Precision Castparts, with about participation of 3 percent with a value of $ 882 million as of March 31, according to filings with securities regulator.

Although it began to acquire the stake in 2012, it remains one of the investments more small portfolio of Berkshire. Such investments are usually chosen by Buffett investment managers, Todd Combs and Ted Weschler.

The addition of Precision Castparts extend the incursion of a decade of Buffett in the industrial sector, which has bought companies as the manufacturer Marmon parts, the Israeli company Iscar tools and chemical company Lubrizol.

He believes that those companies were among his collection of foreign companies to the insurance sector contributing largely to results Berkshire.

Precision Castparts produces components such as nuts, bolts and other fasteners for aerospace companies such as Airbus and Boeing Co SE Group, an industry that accounts for about 70 percent of its sales.

It also manufactures products such as pipes and fittings for companies in the energy and industrial sector.

The company reported a profit of 1,530 million on net sales of 10,000 million for the fiscal year ended . March 29

The shares of Precision Castparts have fallen 29 percent since June 2014, and have traded below the S & P 500 at about 30 percentage points over the past five years.

Berkshire shares have also traded below the index in the past five years, but at a slower rate

.