Berkshire Hathaway to Buy OxyChem for $9.7B, Buffett's Biggest Deal in 3 Years
Berkshire Hathaway, led by legendary investor Warren Buffett, is set to make its largest acquisition in three years, agreeing to buy Occidental Petroleum's chemicals division, OxyChem, for $9.7 billion. The deal, expected to close later this year, is Buffett's biggest since acquiring Alleghany in 2022.
OxyChem, a significant player in the chemicals industry, produces essential products such as chemicals used in IV bags, swimming pools, and caustic soda for various sectors. Occidental CEO Vicki Hollub anticipates a prosperous future for OxyChem and its employees under Berkshire Hathaway's ownership.
Buffett, who is a major investor in Occidental, is stepping down as CEO of Berkshire Hathaway at the end of the year. The all-cash deal will see $6.5 billion used to reduce Occidental's substantial debt, which currently stands at over $20 billion. The acquisition is expected to be finalized in the fourth quarter of 2023.
The acquisition of OxyChem by Berkshire Hathaway, at a cost of $9.7 billion, is set to strengthen both companies' positions in their respective sectors. With Buffett's retirement as CEO looming, the deal underscores his continued influence and commitment to Berkshire Hathaway's growth.
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