Occidental Sells Chemical Unit to Berkshire for $9.7 Billion
The energy giant will use the proceeds to accelerate debt reduction and focus on its core oil and gas business.
Occidental Petroleum has agreed to sell its petrochemical division, OxyChem, to Warren Buffett's Berkshire Hathaway in a deal valued at $9.7 billion in cash. The move provides a significant capital infusion for Occidental, which plans to use the proceeds to aggressively pay down debt and sharpen its focus on its primary oil and gas exploration and production business.
This divestment is a key part of Occidental's strategy to fortify its balance sheet. The company announced it would direct $6.5 billion from the sale to reduce its principal debt to below $15 billion, a crucial target set following its acquisition of CrownRock in late 2023. This sale allows Occidental to , deleveraging after a period of significant acquisitions and investments. The transaction is expected to close in the first half of 2026, pending regulatory approvals.
For Berkshire Hathaway, the deal marks its largest acquisition since 2022 and signals a renewed bet on the industrial and chemicals sector. OxyChem, which manufactures essential building-block chemicals like chlorine and vinyls, represents what Berkshire's Vice Chairman of Non-Insurance Operations, Greg Abel, called a '.' The acquisition deepens Berkshire's existing relationship with Occidental, in which it already holds a stake of over 28%.
The deal is one of the last major transactions involving Warren Buffett, who has signaled his intention to step down as CEO. It underscores Berkshire's long-term investment philosophy of acquiring established, cash-generative businesses. By purchasing OxyChem, Berkshire gains a stable, US-based industrial asset while providing Occidental with the liquidity needed to pursue its strategic goals in the energy sector. was made on October 2, detailing the terms of the all-cash transaction.