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...Alongside the strength of its industrials business, which includes Precision and Lubrizol, Berkshire reported higher pre-tax earnings from its divisions that focus on homebuilding and consumers — the latter...
...The manufacturing unit that includes industrials group Precision Castparts and specialty chemicals group Lubrizol reported a 4 per cent rise in revenues....
...Berkshire knows parts of the company, having held Great Lakes Chemical Corp stock in the early noughties. Great Lakes merged to form Chemtura, which Lanxess acquired in April....
...Mr Zachert said the two additives units will merge to become “a global champion” and compete with the likes of Lubrizol, the Ohio-based chemicals group owned by Berkshire Hathaway....
...Lubrizol’s $585m pension fund was 92 per cent invested in equities at the end of 2014, up from 66 per cent three years earlier, according to their most recent regulatory filings....
...Precision Castparts will therefore become a sixth company alongside what Mr Buffett calls his “powerhouse five” of non-insurance subsidiaries: industrial lubricants business Lubrizol, metalworker IMC, the...
...The acquisition of PSPI comes almost three years after Berkshire spent $9bn on the speciality chemicals group Lubrizol, and Mr Buffett put Lubrizol chief executive James Hambrick in charge of overseeing...
...However, he resigned in early 2011 after it emerged that he had purchased about $10m worth of shares in Lubrizol before recommending that Mr Buffett acquire the group....
...due to transactions in Lubrizol stock....
...Speculation has concentrated on a few internal candidates since the previous frontrunner, David Sokol, resigned last year following the discovery that he had purchased stock in Lubrizol before the company...
...Railroad company BNSF, tool maker Iscar, Lubrizol, the MidAmerica power company and the miniature industrial conglomerate Marmon all produced record earnings, he said, contributing over $9bn to pre tax profits...
...Berkshire reported a mixed set of results on Friday evening, reflecting movement in the value of long dated derivative positions, the acquisition of oil company Lubrizol, and the re-estimation of reserves...
...Buffett’s purchases included $6.9bn of equities, $5bn of preferred shares and warrants in Bank of America and the $9bn acquisition of Lubrizol Corporation....
...A growing interest in industrials during the past decade, notably since 2005 (Burlington Northern Santa Fe Railway, MidAmerican Energy, Lubrizol)....
...But the SEC filing shows him taking more of an interest in businesses such as Lubrizol, the chemicals manufacturer, which Berkshire acquired for $9bn earlier this year....
...Even after shelling out $14bn between Lubrizol and Bank of America, Berkshire could have replenished its pile by year-end....
...Last year, German group BASF bought speciality maker Cognis in a €3.1bn deal, while Berkshire Hathaway spent $9bn on US group Lubrizol....
...FT Alphaville has nine further questions about the circumstances of the Lubrizol purchases....
...The fresh details again raise questions about Sokol’s decision to take a $10m stake in Lubrizol while orchestrating a potential takeover of it....
...The bank has had a well-regarded run of advising on deals including AT&T’s $39bn deal to buy T-Mobile USA and Berkshire Hathaway’s $9bn acquisition of Lubrizol....
...That values Lubrizol at $9.7bn, including net debt....
...Bloomberg adds that the $9bn payment for Lubrizol, means Buffett is getting the company at its Lehman-bust valuation....
...Indeed, in an interview with CNBC Mr Sokol said he thought the chance of deal between Lubrizol and Berkshire stood at no more than a five per cent....
...Lubrizol was acquired by Berkshire for $9bn last month. The report said Berkshire was considering “possible legal action against Mr....
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