Warren Buffett speaks throughout the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2025.
CNBC
Warren Buffett’s Berkshire Hathaway introduced Thursday it reached a deal to purchase Occidental Petroleum’s petrochemical unit, OxyChem, for $9.7 billion in money.
The deal marks Berkshire’s largest since 2022, when it paid $11.6 billion for insurer Alleghany. It additionally comes at a time during which the conglomerate is sitting on $344 billion in money, a document for the corporate.
Berkshire is already a significant investor in Occidental, holding a 28.2% stake as of the tip of June. Buffett — who’s 95 and stepping down as CEO on the finish of the yr — has mentioned he would not take full management of the oil firm.
Buffett started shopping for Occidental inventory within the open market in 2022, profiting from heightened market volatility to scoop shares at cheaper ranges.
OxyChem manufactures water remedy, healthcare and different business chemical substances. Occidental mentioned it would use $6.5 billion of the proceeds to pay down debt.
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,” mentioned Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire, in a press launch. Abel, who will exchange Buffett as CEO of Berkshire in 2026, added that Occidental CEO Vicki Hollub is displaying her “commitment to Occidental’s long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company’s balance sheet.”
Both firms count on the deal to shut within the fourth quarter. The Wall Street Journal first reported on the transaction earlier this week.
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