Berkshire Hathaway Inc has completed its acquisition of Burlington Northern Santa Fe Corp on Friday. Burlington Northern, the no. 2 Railroad Company of U. S., will now be operated as a subsidiary of Berkshire Hathaway, run by Warren Buffet.
Berkshire Hathaway Inc has to pay roughly $26.4 billion for the purchase of Burlington Northern Santa Fe Corp. According to the deal BNSF shareholders will receive roughly $15.87 billion in cash, 80932 Class A and 21 million Class B shares of Berkshire Hathaway.
The shareholders of Burlington Northern Santa Fe Corp. approved the deal to sell the company to Berkshire Hathaway Inc. on Thursday. The head of the company said in a statement that the deal will enable the railroad to focus on long-term growth. Berkshire also replaced BNSF in Standard & Poor's 500 indexes of large U. S. companies. It began trading on that index on Tuesday.
While there is a bad news also for the Buffet owned company as Fitch Ratings cut its key rating of Berkshire Hathaway Inc. two notches within investment grade territory. The rating agency took this step citing risks that Warren Buffett's company is taking on in acquiring Burlington Northern Santa Fe Corp. Fitch downgraded Berkshire Hathaway's issuer default rating two notches to AA-from AA+ but kept the rating at a level signifying very high credit quality.