Buffett's Berkshire buys Lubrizol for $9.7 billion

Warren Buffett's investment company Berkshire Hathaway has agreed to buy the entire equity of chemical company Lubrizol Corporation for $9.7 billion.

Berkshire Hathaway will pay $135 per share, a 28 per cent premium to Lubrizol's closing price on Friday, in an all-cash transaction, the company said in a release.

The transaction, which was unanimously approved by the board of directors the company, values Lubrizol at approximately $9.7 billion, including around $0.7 billion in net debt, making it one of the largest acquisitions in Berkshire Hathaway's history.

"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," Warren Buffett, chief executive of Berkshire Hathaway, said.

"Our only instruction to James - just keep doing for us what you have done so successfully for your shareholders," he added.

"This transaction provides compelling value to our shareholders and is a clear endorsement of the growth and diversification success Lubrizol has achieved. We are very excited to have the opportunity to become part of the Berkshire Hathaway family. We believe its philosophy of supporting long-term global investments in technology, assets and employees will enhance execution of our growth strategies. Such a long-term commitment is more important than ever in today's global economy to deliver true market-leading products and services for our customers,¨ James Hambrick, Lubrizol chairman, president and chief executive officer, said.