Buffett pays high price for Precision Castparts
Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc (BRKa.N) has agreed to buy Precision Castparts Corp (PCP.N), valuing the maker of aerospace and other parts at $32.3 billion.
The purchase is Berkshire's largest, and accelerates its transformation from a company largely dependent on insurance businesses into one resembling the broader U.S. economy, including a railroad, several industrial companies, utilities, a car dealership and consumer goods businesses.
It also joins several recent Buffett forays into unglamorous sectors, including a big stake Kraft Heinz Co (KHC.O) and the pending takeover of the Duracell battery business from Procter & Gamble Co (PG.N).
Berkshire has said it owned 3 percent of Precision Castparts prior to Monday's takeover. Precision Castparts earned $1.53 billion in its latest fiscal year.
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