Buffett: There are currently no plans to acquire other railway companies, but we have indeed discussed strengthening cooperation with CSX
Warren Buffett, the stock god, stated in an interview with CNBC's Becky Quick that he does not plan to acquire another railroad company and is not interested in acquiring any railroad company. However, Buffett did meet with the CEO of CSX and discussed deeper cooperation
On Monday local time, investment guru Warren Buffett stated in an interview with CNBC's Becky Quick that he does not plan to acquire another railroad company and is not interested in purchasing any railroad companies. However, Buffett did meet with CSX's CEO and discussed deeper cooperation. This partnership is a way to allow freight to cross the United States without delays and without the need to switch to other rail lines.
CSX is a U.S. holding company in the railroad transportation and real estate industries in North America. Following the news, CSX's stock price fell by as much as 6.29% during trading. Union Pacific Railroad Company dropped about 2%, Norfolk Southern Railway Company fell more than 2%, and Berkshire's decline was less than 1%.
Buffett and Berkshire Hathaway's designated successor Greg Abel met privately with CSX CEO Joseph Hinrichs on August 3 in Omaha's office, without any advisors present. Buffett made it clear to Hinrichs that they would not initiate a takeover of CSX but believe that both sides could strengthen cooperation to gain some benefits similar to those from a merger of the two companies.
Buffett's remarks came after Berkshire's BNSF announced a partnership with CSX and launched a new nationwide rail service last Friday.
The usually calm railroad industry was stirred last month when Union Pacific announced an $85 billion acquisition of Norfolk Southern, leading to speculation that Berkshire, as the parent company of BNSF, might also join the acquisition wave. Driven by these rumors, CSX's stock price rose by as much as 9% in July
