Warren Buffett's firm acquiring Phillips 66 unit

Written by Associated Press | Nebraska | Updated: Dec 31 2013, 21:28pm hrs
WBWarren Buffett's firm has agreed to trade $1.4 billion stock in Phillips 66 for refiner's chemical businesses. PTI
Warren Buffett's company has agreed to trade roughly $1.4 billion of its stock in Phillips 66 for one of the refiner's chemical businesses.

Houston-based Phillips 66 said Monday that Berkshire Hathaway will give up about 19 million of its 27.2 million Phillips 66 shares to acquire a business that makes additives that help crude oil flow through pipelines.

The exact number of shares will be determined by the price of the Houston-based company's stock when the deal closes. That's expected to happen in the first half of 2014.

Buffett says the business Berkshire is acquiring delivers consistently strong financial performance. He says Berkshire's Ohio-based specialty chemical maker, Lubrizol, will oversee the unit's strategic direction.

Phillips 66's stock closed at $74.72 on Monday.