Warren Buffett Nears $10B OxyChem Acquisition Marking Largest Deal Since 2022

Berkshire Hathaway, led by Warren Buffett, is poised to make its largest acquisition since 2022 by purchasing Occidental Petroleum's chemical business, OxyChem, for about $10 billion. This deal, expected to close soon, marks a significant move after Berkshire accumulated a record cash reserve of $344 billion, raising questions about Buffett's market outlook. OxyChem, which contributes substantial pre-tax income and is cyclical in nature, adds to Berkshire's diverse portfolio that includes insurance, railroads, and consumer goods. Buffett, who is stepping down as CEO at the end of 2025 but will remain chairman, has faced challenges in deploying the conglomerate's vast cash effectively, a responsibility set to pass to his successor, Greg Abel. Investors view Buffett's willingness to invest heavily in OxyChem as a sign of confidence in parts of the stock market, despite prior concerns about overvaluation. The deal also benefits Occidental, which plans to use proceeds to reduce debt and boost stock repurchases, with Berkshire being a major shareholder in the oil company.