Warren Buffet's Berkshire Hathaway Buys Burlington Northern
Warren Buffets's Berkshire Hathaway has acquired Burlington Northern Sante Fe Corp (BNSF) for $26 billion. It is the largest ever acquistion for the Buffet, one of the world's richest people.
"It's an all-in wager on the economic future of the United States," Buffett said in a statement, adding that railroads are key to the U.S. economy and will benefit as recovery takes hold. "I love these bets."
The investment in a transportation company that has a long history in the railway is a sign that Buffet believes that the U.S. economy is on the verge of recovery, with the U.S. GDP growing by 3.5% the third quarter.
The deals sees Berkshire paying $16 billion in cash and the remaining in stock.
"We'll have more people moving more goods 10, 20, 30 years from now," Buffett, Berkshire chairman and CEO, said on CNBC television. "I just believe this country will prosper."
The deal makes BNSF the largest railway company by market capitalization with Union Pacific pulling up second