New York
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Berkshire Hathaway, the Warren Buffett-owned conglomerate, has introduced its biggest deal in three years with the deliberate acquisition of OxyChem for $9.7 billion.
This shall be Buffett’s biggest deal since he paid $11.6 billion for Alleghany, an insurance coverage firm, in 2022. Buffett, 95, recently announced he was stepping down as CEO on the finish of the yr.
OxyChem is the chemical enterprise of Occidental, in which Buffett is a major investor. About $6.5 billion of the all-cash deal introduced Thursday shall be used to pay down Occidental’s debt, which has ballooned to greater than $20 billion.
According to its website, OxyChem makes quite a lot of chemical compounds which are used in IV baggage, swimming swimming pools and caustic soda, which is “central to the production of pulp, paper and aluminum, and is used in battery recycling.”
“OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership,” stated Occidental CEO Vicki Hollub in a press launch.
Shares of Occidental (OXY) rose lower than 1% in premarket buying and selling. The deal is anticipated to shut in the fourth quarter of this yr.