The takeover, Berkshire’s largest ever, extends Buffett’s push into the industrial sector and comfortably exceeds the US$26.5bn deal for Burlington Northern Santa Fe railroad in 2010.

“Lubrizol is exactly the sort of company with which we love to partner – the global leader in several market applications”, Buffett said.

Berkshire’s offer of United States dollars 235 per share is a premium of 21.2 percent to Precision Castparts’ Friday close of USD 193.88.

Warren Buffett isn’t using any investment bankers on his $235-a-share, $37 billion deal to buy Precision Castparts, announced Monday morning August 10.

Berkshire already holds a 3% stake in the company, which is based in Portland, Oregon.

Shares of Precision Castparts Corp soared 19.1% to $230.87.

Subject to customary closing conditions such as regulatory approvals, the transaction is expected to be completed during the first quarter of 2016.

Precision Castparts has been on the prowl to buy up smaller companies for several years, and now will be acquired by one of the largest companies in the world.

Berkshire Hathaway chairman Warren Buffett.

U.S. stock index futures were higher on Monday as the quarterly earnings season winds down and poor data out of China boosted hopes for additional stimulus from Beijing.

Precision Castparts counts a workforce of around 30,000 and had $2.6 billion in pretax operating income on a revenue of $10 billion in its last fiscal year.

Buffett has not been shy about making big acquisitions in recent years.

In acquiring Precision Castparts, Buffett is clearly betting that demand for commercial aviation will continue to grow and that airline orders for new aircraft will keep coming in. Shares edged up 1.2% to $17.95 premarket.

And the 85-year-old Buffett wants to give Berkshire the strongest foundation possible for his investors and whoever eventually succeeds him.

“We see a unique alignment between Warren’s management and investment philosophy and how we manage PCC for the long term”, Chief Executive Mark Donegan said in a statement.

Berkshire “A” shares, the priciest on US markets, fell nearly 1.0 percent to $213,400.00.

Precision Castparts last year received five years’ worth of property tax breaks to offset the $2 million cost of new machinery at the 52,000-square-foot plant on NE Hemlock Avenue, Redmond.

In July 2014, Berkshire Hathaway helped finance Burger King’s $11.4 billion purchase of Tim Hortons Inc., a deal that created the world’s third-largest fast food chain.