Berkshire Hathaway’s Record Acquisition: OxyChem for $9.7B
Warren Buffett’s Berkshire Hathaway has recently announced a definitive agreement to acquire Occidental Petroleum’s chemical division, OxyChem, for a staggering $9.7 billion in cash. This marks the conglomerate’s largest acquisition since its 2022 purchase of insurer Alleghany for $11.6 billion.
This deal signifies a significant strategic move for Berkshire, which already holds a substantial 28.2% stake in Occidental. Berkshire has been a major supporter of CEO Vicki Hollub, particularly since helping finance the company’s Anadarko acquisition in 2019. OxyChem is a global manufacturer of commodity chemicals, playing a vital role in industries such as water treatment, pharmaceuticals, healthcare, and commercial development.
For Occidental, the transaction provides crucial financial relief. A significant portion of the proceeds, $6.5 billion, is earmarked for debt reduction to achieve the company’s target of principal debt below $15 billion. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals.
Interestingly, Warren Buffett was not mentioned in the deal materials. This could potentially signal a transition to Vice Chairman Greg Abel, who is set to succeed Buffett as CEO in January 2026.
Source: CNBC