Crude rebounded after dropping to its lowest level of the year in early trading. The Omaha-based conglomerate already owned an eclectic mix of more than 80 subsidiaries.

Warren Buffett, Berkshire’s chairman and CEO, had signaled in his widely read annual letter to shareholders (pdf) that he was interested in making a deal this year “in the $5-20 billion range”. “We will have about $40 billion in cash once we get through this”, Buffett said.

Legendary investor Warren Buffett fired his elephant gun overnight.

“It could raise its costs a bit, but for a company of this size, it’s not significant”, said Brian Reynolds, chief market strategist at New Albion Partners in New York.

PCC will continue to do business around the world under the Precision Castparts name and maintain its headquarters in Portland.

“His selection field is extremely limited”, Morgan said. PCC also produces titanium and nickel superalloy melted and mill products and manufactures extruded seamless pipe, fittings, and forgings.

For the 2015 fiscal year, Precision’s revenue was at $10 billion, more than 70% of which from the aerospace business. Including assumed debt, Precision Castparts is valued at .2 billion.

On Monday, Warren Buffett fired his so-called “elephant gun” at Precision Castparts, after his firm Berkshire Hathaway Inc.

“At some level, any company that Berkshire Hathaway would come knocking on the door saying we’d like buy to you, should be incredibly flattered”, said Michele Henney, a professor of finance and accounting at the University of Oregon.

Donegan added that Precision Castparts “will be exceptionally well-positioned” to support the needs of its customers in the future as part of Berkshire Hathaway. Precision Castparts traded at $273.99 per share in June 2014, a five-year high, according to the NYSE.

Buffett spoke with CNBC’s Squawk Box on Monday and said this will not only be the largest, but also one of the most expensive purchases he’s made. The company was stripped of its AAA rating in 2010 after agreeing to buy railroad BNSF. If the regulatory process goes smoothly the deal will be finalized in the first quarter of 2016. subject to regulatory approvals.

Under the deal, PCC shareholders will receive $235 per share.