Tags: warren buffett | berkshire hathaway | ge | railroad

Berkshire Discloses $1 Billion Price Tag for GE Railroad Assets

Image: Berkshire Discloses $1 Billion Price Tag for GE Railroad Assets
Warren Buffett (AP)

Saturday, 07 Nov 2015 11:42 AM

Berkshire Hathaway Inc., the company controlled by billionaire investor Warren Buffett, said the price for the railroad assets it agreed to buy from General Electric Co. in September was about $1 billion.

Marmon Holdings, a unit of Buffett’s company, acquired about 25,000 tank cars and other equipment from GE in the deal, according to a filing issued Friday by Omaha, Nebraska-based Berkshire. While the transaction had been announced earlier, the price wasn’t disclosed. BNSF, one of the largest U.S. railroads, is also owned by Berkshire.

Wells Fargo & Co., the world’s largest bank by market value, agreed to buy the bulk of a railcar- and locomotive- leasing unit from GE in September as the industrial giant retreats from financial services. The Berkshire and Wells Fargo deals dismantle what was General Electric Railcar Services LLC, a $4 billion-asset business that leases freight and tank cars and offers loans and maintenance services.

Berkshire announced Friday that BNSF contributed $1.16 billion to third-quarter earnings, compared with $1.04 billion a year earlier, as fuel costs fell and freight revenue climbed from agricultural products. Berkshire’s profit in the period doubled to a record $9.43 billion on a one-time investment gain in Kraft Heinz Co.


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Berkshire Hathaway Inc., the company controlled by billionaire investor Warren Buffett, said the price for the railroad assets it agreed to buy from General Electric Co. in September was about $1 billion.
warren buffett, berkshire hathaway, ge, railroad
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2015-42-07
Saturday, 07 Nov 2015 11:42 AM
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