Berkshire Hathaway Plans $9.7B Acquisition OxyChem Chemical Business

Berkshire Hathaway has agreed to acquire Occidental Petroleum's chemical division, OxyChem, for $9.7 billion in cash, marking Berkshire's largest deal in three years and a significant expansion of its chemical sector holdings. OxyChem, a major supplier of commodity chemicals used in water treatment, pharmaceuticals, and other industries, generated nearly $5 billion in sales and $213 million in pre-tax income in recent periods, reflecting steady earnings that align with Berkshire's investment philosophy. The transaction supports Occidental's strategic refocus on its core oil and gas operations and will enable the company to reduce its debt by $6.5 billion, improving financial stability following its previous acquisitions. This deal builds upon the longstanding financial relationship between Berkshire and Occidental, including Buffett's $10 billion investment in Occidental in 2019 to facilitate the Anadarko acquisition, and expands Berkshire's industrial portfolio beyond its prior chemical purchase of Lubrizol in 2011. Berkshire's acquisition will be funded from its substantial cash reserves and is expected to close in late 2025, with OxyChem becoming an operating subsidiary of Berkshire. The move underscores Berkshire Hathaway's commitment to investing in stable, profitable companies that provide essential products and services across various sectors.