Berkshire Hathaway’s Record Acquisition: Buffett’s $9.7B OxyChem Deal
Warren Buffett’s Berkshire Hathaway recently made headlines with its largest acquisition in three years. The conglomerate agreed to purchase Occidental Petroleum’s petrochemical unit, OxyChem, for a whopping $9.7 billion in cash. This deal is a strategic double-win for Berkshire, which already holds a significant 28.2% stake in Occidental’s stock.
The acquisition of OxyChem, a manufacturer of chlorine, vinyl products, and other basic chemicals, could potentially be Buffett’s final major deal before he retires as CEO in January 2026. The 95-year-old “Oracle of Omaha” is set to hand over the leadership reins to Vice Chairman Greg Abel, while retaining his position as chairman.
According to Doug Leggate, a Wolfe Research energy analyst, the deal is a “genius” move. “It’s certainly a win-plus for Berkshire because it also helps the company that they own 30% of,” he said. Occidental plans to use the proceeds from the sale to reduce its debt, paving the way for the resumption of stock buybacks.
The transaction is a significant deployment of Berkshire’s record $344 billion cash pile. This massive reserve has been accumulated as Buffett has struggled to find attractively priced major acquisitions since the $11.6 billion Alleghany purchase in 2022. With OxyChem generating $213 million in pretax earnings in Q2 2025, it is positioned as a steady cash generator for Berkshire’s portfolio.
Source: CNBC