Warren Buffett is finally getting closure on a long-held investment he recently called disappointing.
USG agreed to a $7 billion buyout by Germany's Knauf after Buffett's Berkshire Hathaway threw its support behind a shareholder uprising. Berkshire is USG's biggest shareholder, with a stake of 31 percent, and had said earlier this year it would vote against USG's four director nominees after the company rebuffed an earlier Knauf bid.
Knauf is USG's second-largest shareholder. Chicago-based USG makes building materials such as drywall. Berkshire began acquiring the shares 18 years ago but the company has been troubled with bankruptcy and asbestos claims.
It emerged from bankruptcy in 2006 with Berkshire's help. But when the mortgage crisis hit, it needed a $300 million bailout from Berkshire in a deal that gave Buffett's conglomerate the chance to convert notes into shares.
In March, Berkshire said in a securities filing it offered its stake in USG to Knauf for $42 a share. The deal, announced Monday, values Berkshire's stake at $1.9 billion.
At last year's annual shareholder meeting, Buffett called the investment "disappointing." And last month, Buffett told CNBC it was the first time he can remember Berkshire voting against a director slate at one of its holdings. He said the directors "didn't represent our interests" about the decision to take that stance.
"For 18 years, it has not worked out that well," he said.
© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.
Two San Diego police officers were shot and wounded in a standoff at a College Area condominium that left the suspect dead late Saturday night.
Hundreds of statewide faith leaders will march Saturday afternoon to the Otay Mesa Detention Center, where they will protest immigration policies that separated more than 2,300 children from their parents.
A 325-acre blaze burning at Camp Pendleton Saturday was described as a ``training fire'' by a base official.
The average price of a gallon of self-serve regular gasoline in San Diego County dropped today for the 16th consecutive day, decreasing nine-tenths of a cent to $3.697.
A crash on an Oceanside freeway Saturday morning left two cars on their roofs and sent one person to a hospital, a fire official
Cooler weekend for the County due to a low pressure trough moving through the Great Basin. Weak and shallow marine layer may still be slow to clear.
A stretch of road in National City was shut down briefly after a large crowd took to the streets to celebrate the Mexico national soccer team's 2-1 victory over South Korea today in the 2018 FIFA World Cup.
The San Diego Humane Society today urged residents to volunteer their homes as foster spaces for the influx of animals typically lost after Fourth of July.
A man was critically injured Friday night when he chased a ball into the street and was hit by a car.
Clayton Richard pitched three-hit ball over six innings for his fourth consecutive win and the San Diego Padres beat the San Francisco Giants 6-2 on Friday night.