WS Investor
02 Oct 2025, 15:19
Berkshire Hathaway announced it will acquire Occidental Petroleum’s chemical business, OxyChem, in a $9.7 billion all-cash deal. The agreement, unveiled on October 2, 2025, will make OxyChem an operating subsidiary of Berkshire, expanding its portfolio with a leading global manufacturer of commodity chemicals used in water treatment, pharmaceuticals, healthcare, and construction.
Occidental said it will use $6.5 billion of the proceeds to reduce debt, aiming to bring principal debt below $15 billion following its CrownRock acquisition. OxyChem’s environmental liabilities will remain with an Occidental subsidiary, which will continue to manage related remedial projects.
The transaction, subject to regulatory approvals, is expected to close in the fourth quarter of 2025. Occidental CEO Vicki Hollub praised the deal as strengthening the company’s financial position and long-term oil and gas strategy, while Berkshire’s Greg Abel highlighted the strong operating assets and workforce OxyChem brings to Berkshire’s non-insurance operations.
Occidental said it will use $6.5 billion of the proceeds to reduce debt, aiming to bring principal debt below $15 billion following its CrownRock acquisition. OxyChem’s environmental liabilities will remain with an Occidental subsidiary, which will continue to manage related remedial projects.
The transaction, subject to regulatory approvals, is expected to close in the fourth quarter of 2025. Occidental CEO Vicki Hollub praised the deal as strengthening the company’s financial position and long-term oil and gas strategy, while Berkshire’s Greg Abel highlighted the strong operating assets and workforce OxyChem brings to Berkshire’s non-insurance operations.
