Berkshire Hathaway to Acquire Occidental's OxyChem for $9.7 Billion
Berkshire Hathaway, led by Warren Buffett, is set to acquire Occidental Petroleum's chemical subsidiary, OxyChem, for $9.7 billion in cash. The deal, expected to close in late 2025, will see the chemical division operate independently under Berkshire Hathaway's umbrella.
This acquisition marks Berkshire Hathaway's second significant foray into the chemicals sector, following its 2011 purchase of Lubrizol for around $10 billion. OxyChem, which produces basic chemicals used in water treatment, healthcare, pharmaceuticals, and construction, will continue to be managed as an independent subsidiary.
Occidental stands to benefit from the transaction as well. The company expects to save more than $350 million annually in interest expenses. It plans to use around $6.5 billion of the sales proceeds to reduce debt, aiming to bring it below $15 billion. Remaining environmental liabilities of OxyChem will continue to be managed by a subsidiary of Occidental.
Upon completion of the deal, Berkshire Hathaway will become the largest shareholder of Occidental Petroleum, holding around 28% of its shares. Meanwhile, Occidental will use the remaining funds, around $1.5 billion after tax, to strengthen its balance sheet. The acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2025.
