US diversified group Berkshire Hathaway Inc (NYSE:BRK.A) has sufficient cash in its war chest to finance another major acquisition, after agreeing on Thursday to buy food giant HJ Heinz Company (NYSE:HNZ) in partnership with buyout firm 3G Capital Inc.
The statement was made by Berkshire Hathaway’s chairman Warren Buffet to CNBC.
He told the TV channel that his company was contributing between USD12bn (EUR9bn) and USD13bn of the total of USD28bn price agreed for Heinz.
Berkshire Hathaway is ready for another big transaction, as it has large amounts of cash left, Buffet explained.
Under the agreement with Heinz, Berkshire Hathaway and 3G Capital are paying USD72.50 per share, with the total price to include assumption of the food group’s outstanding debt.
Heinz expects to drive further growth as a private company under the ownership of the two investors, it said.
The deal, to be financed with cash and debt, is seen to wrap up in the third quarter of this year, subject to clearance by regulators and shareholder approval.