Warren Buffett's Berkshire Hathaway has agreed to buy part of FTSE 100 engineer IMI for $1.1bn (£690m).
The deal will see IMI's beverage dispense and merch-andising unit, which makes valves for drink dispensers, join Marmon, part of the billionaire's conglomerate. Its interests stretch from insurance to property to Tesco. IMI's beverage business accounted for about 14 per cent of the group's revenues but has been struggling as major customers cut back on spending.
The group had originally just planned to sell a part of the division but will now return £620m to shareholders and £70m to its defined benefit pension scheme. IMI's shares rose 29p to 1,528p.