Berkshire Hathaway to Acquire OxyChem From Occidental for $9.7 Billion

Berkshire Hathaway struck a deal to acquire Occidental Petroleum’s OxyChem business for $9.7 billion in cash. (Photograph by Essam Al Sudani/AFP/Getty Images)

Key Points

• Berkshire Hathaway will acquire Occidental Petroleum’s chemical division, OxyChem, for $9.7 billion in an all-cash deal.
• The acquisition is expected to close in the fourth quarter.
• The OxyChem purchase is Berkshire Hathaway’s largest deal since 2022.

Berkshire Hathaway agreed to acquire Occidental Petroleum’s chemical division, OxyChem, in a $9.7 billion, all-cash transaction.

Occidental Petroleum gained 1% to $48.18 while Berkshire’s Class B shares fell 0.3% to $496.78 in premarket trading. Futures tracking the benchmark S&P 500 index were up slightly.

Oil and gas producer Occidental is striving to reduce debt following its acquisitions of Anadarko Petroleum and CrownRock in 2019 and 2023, respectively. Occidental said Thursday it expects to use $6.5 billion of the 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 CEO Vicki Hollub said in a statement.

The deal, which is expected to close in the fourth quarter of 2025, is the largest for Warren Buffett’s Berkshire since 2022, when it purchased insurer Alleghany for nearly $12 billion. Prior to Thursday’s announcement, Berkshire was already Occidental’s largest shareholder.

Greg Abel, Berkshire’s vice chairman of non-insurance operations, commended Occidental management “for their commitment to Occidental’s long-term financial stability.”

OxyChem will function as an operating subsidiary within Berkshire, the companies said, while a subsidiary of Occidental will retain the chemical unit’s legacy environmental liabilities.

OxyChem generated a combined $2.4 billion in revenue during the first two quarters of 2025. The business specializes in chemicals used in battery recycling and water treatment as well as vinyl products that serve as a component of medical supplies.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com