Phillips 66 entered into an agreement to repurchase $3.3 billion of its common shares from a subsidiary of Berkshire Hathaway Inc.
Phillips 66 will buy back 35 million shares at a price of $93.725 per share, according to a Feb. 13 news release. The deal is an opportunity for Phillips 66 to return more capital to shareholders, according to Chairman and CEO Greg Garland. Upon deal closing on Feb. 14, Berkshire Hathaway would hold an equity ownership stake in 45.7 million shares of the company.
"This transaction was solely motivated by our desire to eliminate the regulatory requirements that come with ownership levels above 10%. We remain one of Phillips 66's largest shareholders and plan to continue to hold the stock for the long term," said Warren Buffett, chairman and CEO of Berkshire Hathaway.