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Berkshire Hathaway to Acquire OxyChem for $9.7 Billion

10/3/2025

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Summary

Story summary

Berkshire Hathaway will acquire Occidental Petroleum's chemical division, OxyChem, for $9.7 billion in cash.
The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals.
Occidental plans to use $6.5 billion from the sale to reduce its debt, which exceeds $20 billion. Berkshire Hathaway currently holds a 28% stake in Occidental, reinforcing their long-standing relationship.

History

Historical Context

In 2005, Berkshire Hathaway's $3 billion investment in PetroChina underscored its strategic focus on the energy sector. This move coincided with Occidental Petroleum's $6.5 billion allocation from the OxyChem sale to manage over $20 billion in debt, reflecting a broader trend of significant financial maneuvers in the energy industry that could reshape competitive dynamics in the chemical sector.

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Story summary

Berkshire Hathaway will acquire Occidental Petroleum's chemical division, OxyChem, for $9.7 billion in cash.
The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals.
Occidental plans to use $6.5 billion from the sale to reduce its debt, which exceeds $20 billion. Berkshire Hathaway currently holds a 28% stake in Occidental, reinforcing their long-standing relationship.

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