Warren Buffett's company has agreed to buy no more than 25% of dialysis firm DaVita Inc. unless the two firms agree to it. DaVita officials disclosed the agreement with Berkshire Hathaway Inc. on Tuesday.
Berkshire currently holds about 15 million shares of DaVita, which represents almost 15% of the Denver-based company. DaVita runs nearly 2,000 outpatient dialysis clinics.
DaVita's Kim Rivera said in a conference call Berkshire recently approached the firm about possibly increasing its investment, and this agreement reinforces that Berkshire is a passive investor.
Berkshire's stake in the company has grown significantly since it first disclosed owning 2.7 million DaVita shares at the end of 2011.
One of Berkshire's two other investment managers besides Buffett signed the agreement, reinforcing the idea that Buffett didn't pick DaVita.