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Berkshire-Lubrizol Deal Has $200M Break-Up Fee

If Warren Buffett's deal to buy specialty chemical company Lubrizol Corp. falls apart, Buffett's Berkshire Hathaway Inc. will receive $200 million.

OMAHA, Nebraska (AP) -- If Warren Buffett's deal to buy specialty chemical company Lubrizol Corp. falls apart, Buffett's Berkshire Hathaway Inc. will receive $200 million.

Lubrizol revealed the break-up fee for the $9 billion deal Tuesday in documents filed with the Securities and Exchange Commission. The companies announced the cash deal, which includes about $700 million in debt, on Monday.

Lubrizol says it agreed to the deal with Omaha-based Berkshire on Sunday.

If regulators and Lubrizol shareholders approve the $135 per share offer, the companies expect Lubrizol to become a Berkshire subsidiary sometime in the third quarter.

Lubrizol, based in Wickliffe, Ohio, makes chemicals for pharmaceutical companies, fuel additives for gasoline and diesel and other ingredients for the transportation sector.