Burlington shareholders approve $26.3 billion sale to Warren Buffett’s Berkshire Hathaway

Burlington shareholders approve sale to Berkshire

NEW YORK — Burlington Northern Santa Fe Corp. said Thursday shareholders have approved the railroad’s sale to Warren Buffett’s Berkshire Hathaway.

The shareholder vote is the last major step before the $26.3 billion purchase of the nation’s second-largest railroad.

When the deal officially closes on Friday, it will be Berkshire’s largest-ever acquisition.

Burlington Northern CEO Matt Rose said 70 percent of shares cast approved the deal. The acquisition needed two-thirds approval to pass.

“Tomorrow begins the first century of ownership of BNSF by Berkshire Hathaway,” Buffett said in a statement. “I’m looking forward to every day of it as our railroad does its part to ensure the future prosperity of the country.”

Berkshire Hathaway, based in Omaha, Neb., agreed last fall to pay $100 per share in cash and stock for the 77.4 percent of BNSF shares that it didn’t already own.

When he announced the deal, Buffett called it an “all-in wager” on the U.S. economy, since freight railroads carry so many items that consumers use everyday. Everything from toys and cars to lumber for homes and coal for electricity rolls on the rails. Burlington Northern, based in Fort Worth, Texas, ships enough coal to power one of every 10 homes in the U.S.

In an interview with The Associated Press, CEO Rose said a rise in recent shipments indicates the economy is stabilizing, but sustainable growth still appears a long way off.

Although recent storms on the East Coast have bumped up demand for coal to generate electricity, the outlook in other segments — especially those tied to consumer spending — is still mediocre at best.

“The story is better than last year,” Rose said. “But not great at all”