Berkshire Hathaway buys OxyChem for $9.7 billion
Purchase marks the biggest deal in three years from Warren Buffett's company – and could be his last as CEO.
Daniel Zuchni
Warren Buffett's Berkshire Hathaway has announced plans to buy OxyChem from Occidental Petroleum for $9.7 billion. That's the largest deal the company has announced in three years and possibly the last it will undergo with Warren Buffett as CEO.
Suggested Reading
OxyChem is a petrochemical company that is the leading provider of PVC, used to make everything from pipes to medical supplies to electrical conduits. It also makes water treatment chemicals and other products.
Related Content
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,” said Greg Abel, Vice Chairman of Non-Insurance Operations and incoming CEO at Berkshire in a statement. "We commend Vicki and the Occidental team for their commitment to Occidental’s long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company’s balance sheet.”
OxyChem plans to use $6.5 billion of the money it receives to pay down debt. The deal is expected to close in the fourth quarter.
Whispers of the deal began to circulate on Tuesday in a report from The Wall Street Journal.
Buffett has a long history with Occidental, OxyChem’s now-former parent. Six years ago, he made a $10 billion commitment to the company to help with its purchase of Anadarko Petroleum. He bought more shares in 2022, feeling they were undervalued.
Buffett, 95, announced earlier this year that he plans to step down as CEO of Berkshire at the end of 2025. He will, however, remain as chairman. Abel will take over the CEO role. Before heading the insurance operations, Abel was CEO of Berkshire Hathaway Energy and is known for his strong expertise in the energy industry, which could have contributed to Thursday's announcement.