Berkshire Hathaway eyes chemical companies for possible acquisitions

Warren Buffet of Berkshire Hathaway said earlier this year that acquiring companies is like big game hunting and that his trigger finger is itchy. At the moment, Buffet seems to have his sights on companies in the chemical industry to add to his collection. Solutia, a chemical maker, and Methanex, a methanol producer are possible targets, in addition to small- or mid-size companies that could meet Buffet’s investment profile. Solutia and Methanex are both profitable companies in niche markets. Hassan Ahmed, an analyst with Alembic Global Advisors states that consolidation could be good for this fragmented market. “Clearly consolidation needs to happen,” he said. (April 15, 2011)