Berkshire Hathaway Buys Occidental's OxyChem for $9.7 Billion
Berkshire Hathaway, led by legendary investor Warren Buffett, is acquiring Occidental's chemical division, OxyChem, for $9.7 billion. This is Buffett's largest deal since the 2022 purchase of Alleghany. The acquisition is expected to close later this year.
OxyChem produces a wide range of chemicals, including those used in IV bags and swimming pools. Its caustic soda is crucial for various industries such as pulp, paper, aluminum production, and battery recycling. Vicki Hollub, CEO of Occidental, expects OxyChem and its employees to flourish under Berkshire Hathaway's ownership.
The all-cash deal, valued at $9.7 billion, will see around $6.5 billion used to pay down Occidental's substantial debt, which stands at over $20 billion. This acquisition is Berkshire Hathaway's biggest deal in three years, following the purchase of Alleghany in 2022 for $11.6 billion. Interestingly, Buffett is already a major investor in Occidental. Shares of Occidental (OXY) rose less than 1% in premarket trading after the deal was announced.
The acquisition of OxyChem by Berkshire Hathaway is set to close in the fourth quarter of this year. This deal, worth $9.7 billion, will help Occidental reduce its debt and sees Buffett, who is stepping down as CEO of Berkshire Hathaway later this year, make his largest deal since 2022.
