Thursday, May 16, 2013

Berkshire Buys Balance of Israel's Iscar

Berkshire Hathaway is finishing what it started in Israel.

On Wednesday, the megaconglomerate of companies run by famed billionaire Warren Buffett announced it is buying the remaining 20% it did not (at the time) own of Netherlands-incorporated, Israel-centric toolmaker IMC International Metalworking Companies.

Berkshire will pay $2.05 billion for the final slice of IMC, more commonly known as "Iscar," noting that the large price tag is an indication of the company's "very significant growth over the last seven years" since Berkshire made its initial investment in 2006. At that time, Buffett was able to buy 80% of Iscar for just $5 billion.

Following today's news, Berkshire Class A shares defied the market's downturn, and rose 0.4%, to close at $159,699.

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