Commodities have always remained popular amongst investors even against the background of market jitters, including the COVID-19 pandemic. According to analysts, shares of oil and gas companies are in high demand especially in times of crisis. For this reason, Warren Buffett, an American investor and business tycoon, has decided to buy shares of one of such companies.
Warren Buffett's Berkshire Hathaway Inc. said on Sunday, July 5, it would buy Dominion Energy Inc. gas pipeline and storage assets for $4 billion. Dominion Energy is the second-biggest US Power Company by market value engaged in the transportation and storage of natural gas.
What is more, the list of assets acquired by Berkshire Hathaway includes more than 12,390 km of natural gas transmission lines and 900 billion cubic feet of gas storage.
In addition, Berkshire Hathaway unit will also assume Dominion Energy's $5.7 billion debt. According to preliminary calculations, the total amount of the transaction, including debt, will come in at $9.7 billion. "We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business," Buffett said. The agreement is planned to be signed in the fourth quarter of this year.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
-
Grand Choice
Contest by
InstaForexInstaForex always strives to help you
fulfill your biggest dreams.JOIN CONTEST -
Chancy DepositDeposit your account with $3,000 and get $1000 more!
In April we raffle $1000 within the Chancy Deposit campaign!
Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.JOIN CONTEST -
Trade Wise, Win DeviceTop up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.JOIN CONTEST