Berkshire Acquires OxyChem from Occidental for $9.7 Billion
Warren Buffett’s Berkshire Hathaway unveiled its most significant acquisition since 2022 on Thursday, confirming an agreement to acquire OxyChem, the petrochemical division of Occidental Petroleum, for a cash consideration of $9.7 billion.
This acquisition marks a pivotal moment, potentially being Buffett’s last major acquisition before he steps down as CEO at the end of 2025. Greg Abel is slated to succeed him in January 2026. As Berkshire already holds a 28.2% stake in Occidental, making it the largest shareholder, this transaction seems to be a natural progression of their existing relationship.
OxyChem is a key manufacturer of essential chemicals used in various sectors such as water treatment, pharmaceuticals, and construction materials. It generates an estimated $800-900 million in pretax income annually.
Occidental CEO Vicki Hollub highlighted that the $6.5 billion proceeds from the sale would be utilized to bring down the debt below their $15 billion target. This strategic move will enable the company to recommence share buybacks and concentrate on their core oil and gas operations.
The acquisition comes at a time when Berkshire is holding nearly $344 billion in cash. Analysts perceive OxyChem as a stable, low-volatility business that aligns well with Buffett’s investment philosophy. The transaction is anticipated to close in the fourth quarter of 2025, subject to regulatory approvals.
Source: CNBC