Berkshire Hathaway's $9.7B OxyChem Acquisition Marks Largest Deal in 3 Years
Berkshire Hathaway, led by legendary investor Warren Buffett, has agreed to acquire Occidental Petroleum's petrochemical unit, OxyChem, in a $9.7 billion all-cash deal. This marks the largest acquisition by Berkshire Hathaway in the past three years.
The acquisition, set to be the largest since Berkshire's takeover of Allegheny Corporation for $11.6 billion in 2022, will see Berkshire pay $6.5 billion towards Occidental's debt reduction. OxyChem produces essential chemicals like chlorine and sodium hydroxide, used in water treatment and healthcare.
Berkshire Hathaway's interest in Occidental has grown since 2019, with the company now owning approximately 28.2% of the oil and gas giant. Despite this, the acquisition announcement did not mention Buffett, indicating a shift in leadership towards his designated successor, Greg Abel. Abel is set to assume the CEO role, with Buffett remaining as chairman.
With this acquisition, Berkshire Hathaway, currently holding around $344 billion in cash, further expands its reach into the petrochemical industry. The deal, valued at $9.7 billion, underscores the company's continued appetite for large-scale investments under the leadership of Greg Abel.
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