Berkshire Hathaway to Buy Occidental's Petrochemical Unit for $9.7 Billion — Update
By Connor Hart
Warren Buffett's Berkshire Hathaway said it will buy Occidental Petroleum's petrochemical business for $9.7 billion in cash, confirming an earlier report from The Wall Street Journal.
Most known for its oil-and-gas operations, Occidental already counted Berkshire as its largest shareholder. Its petrochemical division, OxyChem, manufactures and sells chemicals used in applications such as chlorinating water, recycling batteries and producing paper. The unit generated nearly $5 billion in sales in the 12 months ended in June.
The Houston-based company has been selling noncore assets to raise cash to pay down debt following its acquisitions of Anadarko Petroleum and CrownRock in 2019 and 2024, respectively. It said Thursday it expects to use $6.5 billion in proceeds from the transaction to achieve its target level of principal debt below $15 billion.
"This transaction strengthens our financial position and catalyzes a significant resource opportunity we've been building in our oil and gas business for the last decade," Occidental Chief Executive Vicki Hollub said.
Shares of Occidental ticked up 1% to $48.18 in premarket trading, while Berkshire's Class B shares fell 0.3% to $496.50.
The deal, expected to close during the fourth quarter, marks Berkshire's largest since 2022, when it agreed to pay $11.6 billion to acquire insurer Alleghany. It additionally marks Buffett's second big bet on chemicals, after Berkshire in 2011 bought specialty-chemicals producer Lubrizol for close to $10 billion, including debt.
"Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team," Vice Chairman of Non-Insurance Operations Greg Abel said, while also commending Occidental's management "for their commitment to (the company's) long-term financial stability."
After the deal closes, OxyChem will be an operating subsidiary within Berkshire, the companies said. A subsidiary of Occidental will retain the chemical unit's legacy environmental liabilities.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
October 02, 2025 09:00 ET (13:00 GMT)
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