Berkshire Hathaway buys up Lubrizol for $9.7 billion in cash


Warren Buffett's Berkshire Hathaway has spent $9.7 billion in cash to acquire Lubrizol Corp. in one of the investment funds' largest deals ever. Paying $135/share, Berkshire Hathaway priced Lubrizol's stock at a 28% premium over its March 11 closing price, with the purchase price 18% higher than Lubrizol's all-time highest-ever close.

Buffett called Lubrizol "exactly the sort of company with which we love to partner" on the basis that it's a global leader in several applications and has a "talented" CEO, James Hambrick. "Our only instruction to James—just keep doing for us what you have done so successfully for your shareholders," Buffett said in a statement.

Berkshire Hathaway and Lubrizol expect the deal to finalize in the third quarter, following Lubrizol shareholder approval and customary closing conditions, including antitrust approval, which would be expected given Berkshire Hathaway's current portfolio, which currently lacks a chemical company....
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