Berkshire Hathaway acquired a 2.49% stake in Tokio Marine Holdings. The transaction is valued at approximately $1.8 billion. National Indemnity, a Berkshire reinsurance subsidiary, executed the investment.
The deal establishes a 10-year strategic partnership between the companies. This alliance focuses on reinsurance collaboration and joint global investments. Both partners intend to pursue international mergers and acquisitions.
Berkshire maintains the right to increase its stake to 9.9% without further board approval. This investment expands Berkshire’s existing footprint in Japanese trading houses.
Tokio Marine will use the capital to buy back its own shares. The buyback program aims to prevent equity dilution for current shareholders.