You just knew Warren Buffett was going to roll in and make a discount buy amid the market upheaval this week. Sure enough, the mega-billionaire, who just lost the title of wealthiest person in the U.S. to Bill Gates, said Thursday that a company owned by Berkshire Hathaway would buy the flagging Constellation Energy Group for $4.7 billion in cash.
The price Buffett (or rather Berkshire-owned MidAmerican) is paying—$26.50 a share—is 60 percent below where Constellation was trading at the end of August. At 1:30 p.m., shares of the company (symbol CEG) were trading at $24.90.
In a statement, Buffett said of Constellation, a supplier of energy products and services to wholesale customers:
MidAmerican has been a wonderful steward of its energy assets and the acquisition of Constellation Energy, when completed, will prove beneficial to all constituents.
The acquisition is expected to be a done deal by close of business Sept. 19.