31 December 2013 11:16 [Source: ICIS news]
LONDON (ICIS)--Phillips 66 is to divest its specialty products pipeline flow improver business to Berkshire Hathaway in a share capital exchange deal, the US energy and refining firm said late on Monday.
The transaction involves Phillips 66 receiving shares of its common stock currently held by Berkshire Hathaway in exchange for the share capital of Phillips Specialty Products, its wholly-owned subsidiary.
“The specific number of shares will be determined by the share price at deal closing,” Phillips 66 said in a statement.
Phillips Specialty Products specialises in developing polymers to maximise the flow potential of pipelines.
The transaction, which is expected to close in the first half of 2014, is part of Phillips 66’s ongoing portfolio management and supports the company’s growth strategy, it said.
“Berkshire Hathaway made a strong offer for our high-performing flow improver business,” said Greg Garland, chairman and CEO of Phillips 66.
“This transaction optimises our portfolio and focuses growth on our midstream and chemicals businesses.”
Warren Buffett, Berkshire Hathaway’s CEO, said: “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway.”
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