The boards of directors of Omaha, Neb.-based Berkshire Hathaway Inc. and Fort Worth, Texas-based Burlington Northern Santa Fe Corp. announced today that Berkshire Hathaway is increasing its holdings in BNSF to 100 percent.
BNSF is a holding company that owns and manages one of the largest North American railway systems through its largest operating subsidiary, BNSF Railway Co. That system includes a rail yard in west-central Springfield and offices at 3253 E. Chestnut Expressway in the Frisco Building.
Berkshire Hathaway (NYSE: BRK.A; BRK.B) is purchasing 77.4 percent of outstanding shares of Burlington Northern (NYSE: BNI) for $100 per share in stock and cash. The transaction is valued at about $44 billion, including $10 billion in outstanding BNSF debt, according to a news release.
"Our country's future prosperity depends on its having an efficient and well-maintained rail system," said Berkshire Hathaway Chiarman and CEO Warren E. Buffett, in the release. "Conversely, America must grow and prosper to do well. Berkshire's $34 million investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railway industry. Most important of all, however, it's an all-in wager on the economic future of the United States. I love those bets."
