Berkshire Hathaway Acquires OxyChem for $9.7 Billion amid Leadership Transition

Berkshire Hathaway Inc. has agreed to acquire Occidental Petroleum Corporation's chemical subsidiary, OxyChem, for $9.7 billion in cash. The deal, announced on October 2, 2025, is expected to close in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions.

OxyChem is a global manufacturer of commodity chemicals used in water treatment, pharmaceuticals, healthcare, and construction. Under the agreement, Occidental will retain OxyChem's legacy environmental liabilities, with Glenn Springs Holdings Inc. continuing to manage existing remedial projects.

Occidental plans to use $6.5 billion of the proceeds to reduce its debt, aiming to lower principal obligations below $15 billion. This move aligns with Occidental's strategy to strengthen its financial position following recent acquisitions, including the $12 billion purchase of CrownRock in 2023.

Berkshire Hathaway, led by Warren Buffett, has a history of strategic acquisitions in the chemical industry, such as the purchase of Lubrizol in 2011 for $9 billion. The acquisition of OxyChem complements Berkshire's existing chemical portfolio and aligns with its strategy of investing in stable, cash-generating businesses.

This transaction may be one of Warren Buffett's final major deals as CEO before transitioning the role to Vice Chair Greg Abel in January 2026. Buffett, who will remain chairman, has praised Abel's leadership style and delegated substantial responsibilities, consistent with Berkshire's decentralized management model.

The chemical sector has experienced volatility due to fluctuating demand and supply chain disruptions. OxyChem's consistent profitability makes it an attractive asset for Berkshire Hathaway, providing a steady income stream amid industry uncertainties.

Occidental's focus on debt reduction reflects broader trends in the energy industry, where companies are balancing growth initiatives with financial prudence. The sale of non-core assets like OxyChem is a strategic move to strengthen balance sheets and focus on primary business areas.

Berkshire Hathaway's acquisition of OxyChem for $9.7 billion is a strategic expansion in the chemical industry and a significant move amid its leadership transition. For Occidental Petroleum, the sale aligns with its debt reduction strategy, allowing a sharper focus on core operations. This transaction underscores the evolving strategies of both conglomerates in adapting to industry dynamics and financial imperatives.