Omaha, Ne. — Warren Buffett’s company is selling 35 million shares of its Phillips 66 stock back to the oil refiner for $3.3 billion.
Berkshire Hathaway and Phillips 66 said this repurchase will let Buffett’s company to reduce its investment below the 10 percent level that triggers additional regulations. The transaction is expected to close Wednesday.
Buffett says Berkshire plans to continue holding Phillips 66 stock long term. After this, Berkshire will hold 45.7 million shares, or about 9.8 percent of the Houston-based refiner.
Berkshire began building its Phillips 66 investment in 2012. Berkshire traded about $1.4 billion of its Phillips 66 stock for an additive business in 2013. Berkshire resumed buying shares later.
Besides investments, Berkshire owns more than 90 subsidiaries in a variety of industries, including insurance, utilities, railroads, and manufacturing.