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Warren Buffett’s Berkshire Hathaway Inc. took stakes in five Japanese trading companies, expanding its reach overseas.
Buffett’s company announced Sunday night that it acquired “a little more” than 5% of the shares of Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co. and Sumitomo Corp., according to a statement. The purchases, made through one of its insurers, National Indemnity, are valued at more than $ 6 billion, according to Bloomberg calculations.
The move marks a major push overseas by Buffett’s firm, which has long accumulated stakes in US companies including Apple Inc. and Coca-Cola Co. Berkshire has also sought overseas investment with stakes in BYD. Co. of China through its Brazilian energy business and payments company. StoneCo Ltd.
“I am delighted that Berkshire Hathaway is participating in the future of Japan and the five companies we have chosen to invest in,” Buffett said in the statement. “The top five trading companies have many joint ventures around the world and they likely have more of these partnerships. me hope that in the future there may be opportunities for mutual benefit ”.
Shares of trading companies rose after the announcement, and Sumitomo rose as much as 8.9% Monday morning in Tokyo.
Berkshire plans to maintain Japan’s investments for the long term and has committed to own only up to 9.9% of the shares of any of the five companies, unless it receives specific approval from the board of directors of the investee company, according to the notice.
– With assistance from Stephen Stapczynski
