Buffett said Monday that Berkshire will pay $235 per share in cash for Precision Castparts’ outstanding stock. It ended up paying a 21% premium.

US stocks rose sharply at the bell to rebound sharply from last week’s selloff lifted by news that Berkshire Hathaway would buy Precision Castparts Corp and hopes of a Chinese bailout package after more disappointing data.

That price tag would reportedly make the purchase the largest standalone acquisition in the history of Berkshire Hathaway, the Omaha, Neb.-based holding company founded by Warren Buffett.

The deal for Precision, which manufactures metal components for industrial gas turbines and supplies sectors including aerospace and the oil and gas industry, underlines Mr Buffett’s confidence in the recovery of US energy demand as the economy strengthens.

Berkshire Hathaway already owns about 3% of Precision Castparts after beginning to build its stake three years ago. We do not, however, expect the full impact on our Berkshire fair value estimate to be greater than 10%.

The industrial company Berkshire bought on Monday has been no exception, but the pension issue is not enough to raise alarm for Berkshire investors.

Precision Castparts, headquartered in Portland, Oregon, was valued at $26.7bn on Friday. But over the long-term, energy prices do not matter in terms of this deal.

“Anybody taking over the company from Warren Buffett - I think it’s potentially positive here that they would be able to focus on running the business as opposed to putting capital to work initially”, said Shanahan. These positions are reported with a lag, so there’s no way to know whether portfolio managers ditched Precision Castparts during the intervening weeks.

“Mark is running this company”, Buffett said.

The boards of directors of Berkshire Hathaway Inc. and Precision Castparts Corp. Buffett has been building his conglomerate through acquisitions in recent years.

“We are fully compliant with PCBG funding requirements, ERISA guidelines and are mindful of our fiduciary responsibilities to the beneficiaries of the fund”, Precision said in a statement.

The dollar.DXY slipped 0.39 percent against a basket of currencies after hitting a four-month high last week.

Most of Precision’s sales are to customers in the United States, continuing a theme Buffett has outlined in the past that American industry is still worth the investment.