Lubrizol shareholders approve sale to Berkshire
At a special meeting on Thursday, shareholders of specialty chemicals firm Lubrizol overwhelmingly approved the acquisition of the company by US conglomerate Berkshire Hathaway for $135/share in an all-cash transaction.
Approximately 95% of the votes cast, in person or by proxy, voted in favor of the merger with Warren Buffett’s company.
In total, 49.4 million, or 77%, of the shares outstanding as of the April 27 record date, were represented at the special meeting, constituting a quorum.
Adoption of the merger agreement required an affirmative vote of a simple majority of the Lubrizol common shares outstanding.
James L. Hambrick, Lubrizol CEO, said: “With this approval, we are one step closer to becoming a wholly-owned subsidiary of Berkshire Hathaway.
“I am excited about the future of Lubrizol. The acquisition leaves us well positioned to continue executing our growth agenda which includes geographic expansion, product innovation, investment in infrastructure and complementary acquisitions.”
Lubrizol produces chemicals for pharmaceutical firms, fuel additives for gasoline and diesel as well as ingredients used in the transportation sector.
In addition to the approval of shareholders, completion of the transaction is subject to satisfaction of customary closing conditions, including the expiration of waiting periods and the receipt of approvals under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act and applicable non-US merger control regulations.
The transaction received early termination under HSR on April 8.
The company said that all non-US regulatory filings are on schedule, and the transaction is projected to close in the third quarter of 2011.
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