Berkshire Hathaway Agrees to Its Largest Takeover yet

08/11/2015 7:00 am EST


The staff at takes a technical look at how this goliath's takeover acquisitionthe largest in the company's history—coupled with a rally in the Chinese stock market, pushed stocks higher on Monday morning.

Warren Buffett's Berkshire Hathaway strengthens its place in the industrial sector with a $32 billion acquisition.

On Monday, billionaire investor Warren Buffett's Berkshire Hathaway (BRK-A) agreed to buy Precision Castparts (PCP), a Portland-based manufacturer of aircraft parts and equipment for energy producers, for $32 billion. This is the biggest acquisition in the conglomerate's history. Per the deal, Berkshire Hathaway—which already held a 3% stake in Precision Castparts—is paying $235 a share, 21% above the firm's Friday closing price of $193.88.

The news sent shares of Precision Castparts up 19.04% to $230.78 and shares of Berkshire Hathaway down 1.16% to $212,959.95 as of 10:25AM ET.

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The acquisition, coupled with a rally in the Chinese stock market, pushed stocks up Monday morning. By 10:30AM ET, the Dow Jones Industrial Average rose 1.07%, the Nasdaq Composite gained 1.06%, and the S&P 500 climbed 1.04%.

By the Staff of

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