Occidental Sells Petrochemical Arm to Berkshire in $9.7B Deal

Warren Buffett's Berkshire Hathaway has struck a deal to acquire the petrochemical division of Occidental Petroleum (OXY) for approximately $9.7 billion, marking Berkshire's most significant acquisition in several years. The all-cash transaction will see OxyChem, a major producer of chemicals like chlorine and caustic soda, move under the umbrella of the Omaha-based conglomerate.

For Occidental, the divestiture represents a strategic move to deleverage and streamline its operations. The company has announced its intention to use $6.5 billion from the sale proceeds to , a priority following its recent acquisition of energy producer CrownRock. This sale allows Occidental to sharpen its focus on its primary oil and gas development activities, particularly within the lucrative Permian Basin.

This acquisition deepens the already significant relationship between the two corporate giants. Berkshire Hathaway is Occidental's largest shareholder, holding a stake of approximately 28%. The relationship was solidified in 2019 when Berkshire provided a to help finance Occidental's successful acquisition of Anadarko Petroleum. While some investors have speculated that Berkshire might eventually acquire Occidental outright, Warren Buffett has previously stated he has no intention of taking full control of the oil firm.

From Berkshire's perspective, the OxyChem purchase is a strategic diversification into the steady, high-demand petrochemical sector. Greg Abel, Berkshire’s Vice Chairman of Non-Insurance Operations, noted that the company is acquiring a ' supported by an accomplished team.' The deal indirectly bolsters Buffett's existing investment in Occidental by providing the company with a significant capital infusion to strengthen its financial position. The transaction is expected to close in the fourth quarter of 2025, pending customary regulatory approvals.