(March 23): Berkshire Hathaway Inc will invest ¥287.4 billion (US$1.8 billion or $2.3 billion) in insurer Tokio Marine Holdings Inc, marking a significant increase in the US conglomerate’s exposure to the Japanese market.
National Indemnity Company, a subsidiary of Berkshire, will make a 2.49% strategic investment in Tokio Marine, and the two companies will collaborate on reinsurance and mergers and acquisition, according to a statement on Monday.
The deal is Berkshire’s latest move in Japan, where six years ago — under the leadership of Warren Buffett — the firm revealed it had invested in the country’s largest trading houses. Buffett said in an annual letter to shareholders that the firm was looking to raise ownership in Japan’s five largest trading houses “over time”.
Tokio Marine will sell treasury shares to Berkshire Hathaway as part of its strategic partnership.
Berkshire said it will not raise its stake above 9.9% without approval from Tokio Marine’s board.
Uploaded by Tham Yek Lee
