Warren Buffett’s Gen Re invests in German chemicals firm

Warren Buffett’s Gen Re invests in German chemicals firm | Insurance Business

Warren Buffett’s Gen Re invests in German chemicals firm
Warren Buffett’s General Reinsurance (Gen Re) Corporation has made an investment in German chemicals company Lanxess, purchasing a 3% stake in the company, which is valued at a total of US$6.8 billion.

In a stock exchange filing by Lanxess, it announced that the deal with Gen Re was finalized on May 19. This makes Gen Re a top-five shareholder of the company, alongside Allianz Global Investors, Templeton Investment Counsel, and Government Pension Fund Global, Norway's sovereign wealth fund.

Lanxess, a spin-off from medicine and pesticide giant Bayer, recorded 25% growth in both sales and operating profit for the first three months of 2017. Last month, it acquired another chemical company, Philadelphia-based Chemtura Inc.

This investment is Buffett’s third-such deal in Germany. In January 2017, Precision Castparts Corporation, a part of the Berkshire Hathaway group, acquired piping components manufacturer Wilhelm Schulz. In 2015, Berkshire Hathaway purchased Hamburg-based motorcycle parts maker Louis for US$446 million.


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