Berkshire Hathaway to acquire OxyChem from Occidental for $9.7 billion
Berkshire Hathaway Inc. has reached a definitive agreement to acquire Occidental Petroleum’s chemical business, OxyChem, in a $9.7 billion all-cash transaction. The deal, subject to regulatory approvals and customary conditions, is expected to close in the fourth quarter of 2025.
OxyChem manufactures a range of commodity chemicals used in water treatment, pharmaceuticals, healthcare, and residential and commercial development. Under the agreement, OxyChem will become an operating subsidiary of Berkshire Hathaway. Occidental will retain responsibility for OxyChem’s legacy environmental liabilities through a separate subsidiary.
Occidental plans to use $6.5 billion of the proceeds from the sale to reduce debt and bring its total principal debt below $15 billion, a target set after the company’s CrownRock acquisition in 2023.
In announcing the deal, Occidental President and Chief Executive Officer Vicki Hollub said the transaction supports the company’s focus on expanding its oil and gas resources. Berkshire Hathaway Vice Chairman of Non-Insurance Operations Greg Abel described OxyChem as a well-managed business with a strong workforce that will continue to thrive under Berkshire’s ownership.
The transaction marks a significant portfolio shift for Occidental while adding a major chemicals operation to Berkshire Hathaway’s diversified holdings.
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