Marine Link
Saturday, December 3, 2016

Berkshire Hathaway to Acquire Business from Phillips 66

December 31, 2013

Berkshire Hathaway is acquiring Phillips Specialty Products Inc. (PSPI), a flow improver business, from Phillips 66 (PSX) (NYSE: PSX). In exchange for the share capital of the wholly owned subsidiary, Phillips 66 will receive shares of Phillips 66 common stock currently held by Berkshire Hathaway (BRK-B). The specific number of shares will be determined by the share price at deal closing.


“The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway. I plan to have James L. Hambrick, CEO of The Lubrizol Corporation, oversee its strategic direction.”


“I have long been impressed by the strength of the Phillips 66 business portfolio,” commented Warren E. Buffett, Berkshire Hathaway chief executive officer. “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway. I plan to have James L. Hambrick, CEO of The Lubrizol Corporation, oversee its strategic direction.”


PSPI leads the science of drag reduction and specializes in developing polymers to maximize the flow potential of pipelines. This transaction is part of Phillips 66’s ongoing portfolio management and supports the company’s growth strategy.


“Berkshire Hathaway made a strong offer for our high-performing flow improver business,” said Greg Garland, Chairman and CEO of Phillips 66. “This transaction optimizes our portfolio and focuses growth on our Midstream and Chemicals businesses.”


Following regulatory review, the transaction is expected to close in the first half of 2014.
 



 
Maritime Reporter Magazine Cover Nov 2016 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News