Warren Buffett Watch
- Warren Buffett's Berkshire Hathaway Adds GM to Holdings
- Lunch With Warren Buffett: $2 Million-Plus?
- Warren Buffett: Lady Di Called Bill Clinton 'Sexiest Man Alive'
- CNBC Transcript: Warren Buffett on Squawk Box
- Warren Buffett: We're Buying Two US Stocks
- Warren Buffett to CNBC: Mark Zuckerberg Right to Keep Tight Control Over Facebook
- Warren Buffett: Apple and Google Too Risky For Me
- Warren Buffett Reassures Shareholders on Cancer and Succession
- Warren Buffett Recently Considered $22 Billion Acquisition
- Warren Buffett 'Very Comfortable' With Berkshire Stock Buybacks
RSS FEED
MOST SHARED
- Facebook's Dilemma: How Valuable Are 900 Million Users?
- High Tech Worker Shortage: Has Anything Changed?
- What Currencies Are Saying About Stocks
- Social Responsibility Builds Long-Term Success: Opinion
- Home Prices Hit Lows, But 'We See Signs of Hope'
- PB&J, Mac & Cheese Step Out From Kids-Fare Shadow
- Why It’s Suddenly Exciting to Be a Yahoo Shareholder Again
- Back to Civilian Life, Veterans Try Franchises
- Ackman: JCPenney Sales Have Hit 'Bottom'
- Look Who's Betting on Big Blue
- PB&J, Mac & Cheese Step Out From Kids-Fare Shadow
- Ackman: JCPenney Sales Have Hit 'Bottom'
- Goldman Investment Shines Light on Solar Power
- Facebook Options Soar on First Day
- Home Prices Hit Lows, But 'We See Signs of Hope'
- Auto Sales to Really Take Off This Summer?
- JPMorgan Debacle Points to Regulatory Incompetence, Corruption
- Are You Ready for Facebook Options?
- Option Bulls Dig Into Ivanhoe Near Lows
- Spain to Go to Market to Fund Banks, Regions
- Home Prices Hit Fresh Lows, But 'We See Signs of Hope'
- Why the Global Rich Keep Relocating
- Why June Could Be a Turning Point for Markets
- High-Tech Worker Shortage: Has Anything Changed?
- Cramer's Top Dividend Plays
- Facebook Stock Falls Below $29 for First Time
- How Valuable Are Facebook's 900 Million Users?
- JPMorgan Sells Good Assets to Offset 'London Whale'
Warren Buffett Hits His Mark with $9 Billion Deal for Lubrizol
Text Size 
Executive Producer
 |
While it may not be an 'elephant' on the scale of $26 billion for Burlington Northern Santa Fe, it is still one of Berkshire Hathaway's "largest acquisitions in years."
Berkshire says in a news release this morning that it is buying Lubrizol for about $9 billion in cash, plus the assumption of another $700 million in debt.
That's $135 a share for the chemicals company, a 28 percent premium over Friday's closing price of $105.44 and an 18 percent boost from its all-time high.
In pre-market trading this morning, Lubrizol shares are up 27 percent to $134, just below the deal price.
Current price: [LZ
Loading...
()
]
 |
Lubrizol.com Lubrizol Chairman & CEO James Hambrick |
"Lubrizol is exactly the sort of company with which we love to partner – the global leader in several market applications run by a talented CEO, James Hambrick. Our only instruction to James – just keep doing for us what you have done so successfully for your shareholders.”
As pointed out in David Faber's blog this morning, "The company fits the typical profile favored by Warren Buffett in his purchases. It has fairly predictable cash flows and a high return on equity. The purchase price represents roughly 7.6 times Lubrizol's (cash flow.)"
And in typical Buffett fashion, this deal was done very quickly. David is hearing that negotiations began just a few weeks ago.
Current Berkshire stock prices:
Class B: [BRK.B
Loading...
()
]
Class A: [BRK.A
Loading...
()
]
For more Buffett Watch updates follow alexcrippen on Twitter.
Email comments to
Data is a real-time snapshot *Data is delayed at least 15 minutes
