Berkshire Hathaway will snap up speciality chemicals entity Lubrizol in a $9.7 billion deal, one of the biggest buyouts by the Warren Buffett-led conglomerate.

Mr Buffett, well known for his choice of investments, had hinted earlier this month that his group would be looking at acquisition opportunities to boost overall business.

The buyout of Lubrizol, approved by the boards of both companies, is valued at $9.7 billion that includes debt worth $700 million. Lubrizol has presence in 17 countries, including India.

“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, Mr James Hambrick.

“Our only instruction to James — just keep doing for us what you have done so successfully for your shareholders,” Berkshire Hathaway’s Chairman and CEO, Mr Buffett said in a statement today.

The US-based Lubrizol had revenues of $5.4 billion and a global workforce of about 6,900 in 2010, according to its website.

Both entities have entered into a definitive agreement for the all-cash transaction, which is expected to close in the third quarter of 2011.

The deal would be one of the largest in US conglomerate’s history. In 2010, Berkshire Hathaway had bought Burlington Northern Santa Fe in a deal worth over $26 billion.

Once complete, Lubrizol would operate as a subsidiary of Berkshire Hathaway.

“This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved,” Mr Hambrick, who is the company’s Chairman and President, said.

Meanwhile, the Buffett—led group is entering the Indian non-life insurance sector as a corporate agent of leading player Bajaj Allianz General.

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