Berkshire Hathaway Inc. has announced the acquisition of Occidental's chemical business, OxyChem, in an all-cash transaction valued at $9.7 billion. This move is expected to strengthen Berkshire's financial position and unlock a significant resource opportunity in its oil and gas business.
Occidental plans to use $6.5 billion of the transaction proceeds to reduce debt, aiming to achieve a target of principal debt below $15 billion. The company will retain OxyChem's legacy environmental liabilities, while Glenn Springs Holdings, Inc. will continue to manage existing remedial projects for the subsidiary.
Berkshire Hathaway, known for its diverse business activities including insurance, reinsurance, utilities, energy, freight rail transportation, manufacturing, services, and retailing, is acquiring a robust portfolio of operating assets supported by an accomplished team.
Occidental, an international energy company with assets primarily in the United States, the Middle East, and North Africa, operates as one of the largest oil and gas producers in the U.S., with a leading presence in the Permian and DJ Basins, and offshore Gulf of America. Additionally, its midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas.
This acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions. As a result of these announcements, the company's shares have moved -7.25% on the market, and are now trading at a price of $44.26. For the full picture, make sure to review OCCIDENTAL PETROLEUM CORP /DE/'s 8-K report.
