European Commission clears Berkshire Hathaway's Lubrizol bid

25 August 2011 10:26  [Source: ICIS news]

LONDON (ICIS)--The European Commission has cleared the US’s Berkshire Hathaway to buy Ohio-headquartered specialty chemicals maker Lubrizol, it said on Thursday.

The Commission had been examining potential regional competition issues arising from the acquisition, which will cost Berkshire Hathaway around $9.7bn (€6.7bn).

“The Commission… concluded that the transaction would not significantly impede effective competition within the European Economic Area,” the Commission said in a statement.

The Warren Buffett-led industrial conglomerate offered to pay $135 per share for Lubrizol in March, valuing it at $9bn. The deal also includes the assumption of Lubrizol’s $700m debt pile.

Lubrizol shareholders voted overwhelmingly in favour of the deal in June and the pair lodged an application for the Commission’s approval in July.

Lubrizol has previously said that it expects the transaction to close in the third quarter of 2011. The company will remain headquartered in Wickliffe, Ohio, and will continue to be led by CEO James Hambrick, it has said.

($1 = €0.69)

For more on Lubrizol visit ICIS company intelligence

By: Peter Salisbury
+44 20 8652 3214

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