Berkshire Hathaway Acquires Occidental's OxyChem for $9.7 Billion
Berkshire Hathaway, led by Greg Abel, is acquiring Occidental Petroleum's chemical division, OxyChem, for $9.7 billion. The deal, expected to close in late 2025, will use less than 3% of Berkshire's cash and help Occidental reduce debt.
OxyChem produces chemicals like chlorine and vinyl chloride, complementing Berkshire's existing chemical business, Lubrizol. Warren Buffett, Berkshire's CEO, may have influenced the acquisition, given his ties with Occidental's CEO, Vicki Hollub, and the company's significant stake in Occidental, owning over 28% of its stock and holding warrants for another 83,911,942.38 shares.
The acquisition will help Occidental reduce its principal debt below $15 billion by using $6.5 billion from the sale. Berkshire's cash reserves, which have grown due to Buffett's recent lack of major acquisitions, remain largely unaffected by this deal.
The OxyChem acquisition, led by Berkshire's Vice Chair Greg Abel, signals a potential shift in leadership. While investors seemed unimpressed, with Berkshire's and Occidental's shares dropping slightly, the deal is expected to close in the fourth quarter of 2025, further expanding Berkshire's chemical business.
