Conglomerate Berkshire Hathaway has agreed to purchase OxyChem—the chemicals division of Occidental—for a total of $9.7 billion, as per an official press release by both companies.
The update comes as Berkshire Hathaway’s CEO, Warren Buffett, nears the end of his tenure as the executive head of one of America’s largest businesses. Succession plans have been laid out with Vice Chairman Greg Abel set to take over from January 1st, 2026.
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” said Abel in the announcement.
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire. 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.”
This could be Buffett’s last time presiding over a deal of this scale, as the last major acquisition orchestrated under his direct leadership was the $11.6 billion Allegheny deal in 2022.
Occidental will use $6.5 billion of proceeds from the deal to repay its debt and keep its principal debt below $15 billion.
Source: Google Finance
Shares of Hathaway closed at $495.92 on Thursday.