Buffett closes in on $27bn railroad deal

City A.M. Reporter
Burlington Northern Santa Fe Corp shareholders approved the second largest US railroad company’s takeover by Berkshire Hathaway yesterday, clearing the way for the acquisition by billionaire investor Warren Buffett to be completed today.

Berkshire is buying the 77.4 per cent of Burlington Northern that it did not already own. The cash-and-stock transaction was valued at $26.4bn (£16.8bn), or $100 per share, and valued all Burlington Northern at about $34bn.

“[Today] begins the first century of ownership of BNSF by Berkshire Hathaway,” Buffett, 79, said in a statement. “I’m looking forward to everyday of it as our railroad does its part to ensure the future prosperity of the country.”