American businessman Warren Buffett is set to become one of the ten largest shareholders of Goldman Sachs after he agreed to sign a 2008 deal with the bank to exchange his potential profits on warrants for stock.

Goldman said in a statement that the deal allows the business magnate to save billions of dollars in upfront costs while helping the bank reduce dilution to its stock.

The bank added that it will offer shares in Berkshire Hathaway reflecting the difference between the original exercise price of $115 of the warrants and the average closing price of Goldman stock for the 10 trading days.

According to Goldman chief executive Lloyd Blankfein, the bank is pleased that Bershire will remain as its long-term investor.

Under the deal, Buffet was given with the power to by about 43.5 million stock shares at an exercise of $115.