FTC approves Berkshire stake increase in BNSF
The U.S. Federal Trade Commission said Wednesday it has cleared Warren Buffet's Berkshire Hathaway to move forward with a plan to increase the investment group's stake in Burlington Northern Santa Fe Corp., the country's second-largest Class I railroads.
Berkshire Hathaway said earlier this month that it plans to increase its 15 percent share in the railroad to 25 percent, according to a regulatory filing by the Fort Worth, Texas-based railroad.
According to the filing, Berkshire wants to invest at least $600 million in BNSF, which would give the investment group a 17.1 percent stake.
Federal antitrust law requires entities planning to acquire more than 25 percent of a firm's stock to notify the FTC and wait 30 days before closing the transaction.
Wednesday's decision by regulators would effectively allow Berkshire to amass as much as a 50 percent stake in the rail firm.
In April it was revealed that Berkshire Hathaway had acquired a 5 percent stake in BNSF and in May Buffet revealed his firm also owned a 3 percent, or nearly $760 million, stake in another Class I railroad, Omaha, Neb.-based Union Pacific. Berkshire also holds about 4 million shares of Norfolk, Va.-based Class I railroad Norfolk Southern, representing a 1 percent share of the railroad.
In August, Berkshire Hathaway bought a further 10.1 million shares in BNSF, increasing its stake to nearly 15 percent.
FTC approves Berkshire stake increase in BNSF
