Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) is buying Phillips Specialty Products Inc.
Phillips Specialty is the flow improver business of Phillips 66 (NYSE: PSX). The business specializes in drag reduction and developing polymers to maximize the flow potential of pipelines. For the Phillips Specialty business, Phillips 66 will receive shares of Phillips 66 common stock that Berkshire Hathaway owns.
Omaha-based Berkshire Hathaway’s business activities include insurance, energy, transportation, finance, manufacturing, retail and services. Phillips 66 is an energy manufacturing and logistics company headquartered in Houston.
“This transaction optimizes our portfolio and focuses growth on our Midstream and Chemicals businesses,” says Greg Garland, Phillips 66 CEO. In March, Phillips 66 announced plans to sell its e-gas technology business to CB&I (NYSE: CBI).
The deal is expected to close in the first half of 2014. The transaction was announced Dec. 30.