Warren Buffett’s Gen Re invests in German chemicals firm

Transaction is global financial mogul’s third investment in the European country

Warren Buffett’s Gen Re invests in German chemicals firm

Insurance News

By Gabriel Olano

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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