Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lubrizol (NYSE: LZ) surged nearly 30% after Warren Buffett's Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) announced an agreement to buy the specialty chemical company for $135 a share in cash.

So what: The deal, which should allow Berkshire to tap the growing global demand for engine lubricants, values Lubrizol at about $9 billion and represents a 28% premium to its Friday closing price. Today's announcement just comes two weeks after Buffett, in his annual letter to shareholders, wrote that he was ready and willing to use Berkshire's replenished cash hoard on more acquisitions. "Our elephant gun has been reloaded, and my trigger finger is itchy," said Buffett.

Now what: The two companies said they expect the purchase to close sometime in the third-quarter. Of course, with tens of billions in cash remaining in its war chest, Berkshire's hunting expedition could only be getting started. So while you probably missed out on today's buyout bonanza, there are still plenty of potential elephant-sized acquisitions to look into.

Interested in more info on Lubrizol? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Berkshire is a Motley Fool Inside Value and Stock Advisor pick. The Fool owns shares of Berkshire. Try any of our Foolish newsletter services free for 30 days.

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