Berkshire Hathaway Inc has agreed to acquire Phillips Specialty Products Inc (PSPI), a flow improver business, from Phillips 66. 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. 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,” commented Warren Buffett, Chief Executive Officer, Berkshire Hathaway.
PSPI leads the science of drag reduction and specialises in developing polymers to maximise 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. This transaction optimises our portfolio and focuses growth on our Midstream and Chemicals businesses,” said Greg Garland, Chairman and CEO, Phillips 66.
Following regulatory review, the transaction is expected to close in the first half of 2014.
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, Phillips 66 had $ 51 billion of assets as of September 30, 2013.
“I have long been impressed by the strength of the Phillips 66 business portfolio. 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,” commented Warren Buffett, Chief Executive Officer, Berkshire Hathaway.
PSPI leads the science of drag reduction and specialises in developing polymers to maximise 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. This transaction optimises our portfolio and focuses growth on our Midstream and Chemicals businesses,” said Greg Garland, Chairman and CEO, Phillips 66.
Following regulatory review, the transaction is expected to close in the first half of 2014.
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, Phillips 66 had $ 51 billion of assets as of September 30, 2013.