Buffett's Berkshire completes $26 billion acquisition of BNSF
13 Feb 2010
Berkshire Hathaway Inc, the investment firm of billionaire investor Warren Buffett, yesterday completed the acquisition of Burlington Northern Santa Fe Corp (BNSF) for $26.4 billion, issuing new stock and paying out $15.87 billion in cash.
Burlington Northern is America's largest rail transporter of coal and grain and provides a vital link for consumer goods from Asia to the Midwest, many of them flowing through the ports of Long Beach and Los Angeles.
"It is an all-in wager on the economic future of the United States," Buffett said in a statement in November last year when the deal was conceived. "I love these bets," he said.
Burlington Northern carries a variety of goods, including food, clothing and electronics. Its largest business segment last quarter, more than 30 per cent, was moving consumer goods, including televisions, refrigerators and clothing from the West Coast to Midwestern cities such as Chicago and St Louis.
Burlington Northern also hauls imported cars from manufacturers, including Toyota and Honda.
In January, Berkshire Hathaway split its 'B' shares 50 to 1. The move was an abrupt turnaround from Buffett's long-time aversion to stock splits.
