Omaha/Houston, 9 October 2025 — American multinational conglomerate Berkshire Hathaway has agreed to acquire Occidental Petroleum’s chemical subsidiary, OxyChem, in an all-cash transaction valued at $9.7 billion, marking one of the largest industrial acquisitions of the year.
Strategic Rationale
OxyChem, a leading producer of basic chemicals used in water treatment, healthcare, pharmaceuticals, plastics, and construction, generated more than $1.1 billion in earnings in 2024. The business is regarded as a stable, high-margin operation that offsets the volatility of oil and gas markets.
For Occidental, the sale is designed to strengthen its balance sheet following its $12 billion acquisition of CrownRock in 2024. The company said it will use $6.5 billion of the proceeds to reduce debt, targeting principal debt below $15 billion.
Berkshire’s Position
Berkshire Hathaway, already Occidental’s largest shareholder with a 26.9% stake, will add OxyChem to its portfolio of industrial subsidiaries, which includes Lubrizol, acquired in 2011. Vice Chair Greg Abel, who will succeed Warren Buffett as CEO in 2026, said the deal brings “a robust portfolio of operating assets, supported by an accomplished team.”
Market Reaction
Shares of Occidental fell more than 7% following the announcement, as analysts noted the divestment could weigh on future cash flow. Berkshire’s shares were little changed, reflecting investor confidence in the conglomerate’s long-term strategy.
Outlook
The transaction, expected to close in the fourth quarter of 2025, underscores Occidental’s pivot toward becoming a pure-play oil and gas producer, while Berkshire secures a reliable cash-generating business. For Buffett, at 95, the deal may represent one of his final major acquisitions before handing the reins to Abel, highlighting both a strategic shift and a generational transition at the conglomerate.
Berkshire Hathaway hq Kiewit Plaza Omaha Picture by JonClee86
