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Buffett Commits $9 Billion for Lubrizol

March 14, 2011
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Warren Buffett’s company, Berkshire Hathaway Inc., is buying Lubrizol Corp., the Wickliffe, Ohio-based maker of engine lubricants for $9 billion, reports Bloomberg. Berkshire will pay $135 a share in cash, 28 percent more than Lubrizol’s closing price on March 11, Buffett’s firm, based in Omaha, Neb., said in a statement. Buffett has transformed Berkshire over the last decade to add shipping and transportation businesses to the firm’s insurance, energy and consumer goods units. His $26.5 billion purchase of Burlington Northern Santa Fe last year gave Berkshire the second-biggest U.S. railroad. He bought 9.9 percent of Chinese carmaker of BYD Co. and in 2008, and in 2003 he added McLane Co., the distributor of grocery products. Berkshire and Lubrizol said they expect the purchase to be completed in the third quarter. Lubrizol will operate as a subsidiary of Berkshire and remain based in Wickliffe. Lubrizol had revenue of $1.32 billion in the fourth quarter and adjusted earnings per share in the period of $2.45, the company said last month.
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