MidAmerican Energy Holdings Co. will acquire 225 million new H shares of Hong Kong-listed BYD for HKD1.8 bn, a statement from the Chinese company said. The deal still needs approval from regulators, but would give the American company a 9.89 per cent stake in the Shenzhen-based firm.

At a joint press conference, MidAmerican said it is interested in BYD's battery technologies for storing alternative energies, such as wind and solar. BYD has unveiled plans to enter the U.S. market by 2010, and supply the automobile industry with its rechargeable batteries for electric cars.

BYD shares rose 42 per cent to HKD11.90 after the announcement. The U.S. investor is buying the shares for HKD8 (USD1.03) each.

Keywords : BYD, Buffett, MidAmerican, Berkshire, Automobile, Energy

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