Berkshire Hathaway to Acquire OxyChem for $9.7 Billion

Berkshire Hathaway Inc. has announced a definitive agreement to acquire Occidental Petroleum Corporation's chemical subsidiary, OxyChem, in an all-cash transaction valued at $9.7 billion. The deal, disclosed 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 essential to various industries, including water treatment, pharmaceuticals, healthcare, and construction. Under the terms of the agreement, Berkshire Hathaway will operate OxyChem as a standalone subsidiary, maintaining its existing leadership and operational structure.

Occidental plans to allocate $6.5 billion of the proceeds from the sale to reduce its debt, aiming to lower principal obligations below $15 billion. This move follows Occidental's $12 billion acquisition of CrownRock in December 2023. An Occidental subsidiary will retain OxyChem's legacy environmental liabilities, with Glenn Springs Holdings Inc. continuing to manage existing remedial projects.

Vicki Hollub, President and CEO of Occidental, stated, "This transaction strengthens our financial position and catalyzes a significant resource opportunity we've been building in our oil and gas business for the last decade." She added, "OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway's ownership."

Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire Hathaway, commented, "Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team." He further noted, "We look forward to welcoming OxyChem as an operating subsidiary within Berkshire. We commend Vicki and the Occidental team for their commitment to Occidental's long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company's balance sheet."

This acquisition aligns with Berkshire Hathaway's strategy of investing in industrial and cash-generating businesses. OxyChem's operations complement Berkshire's existing chemical holdings, such as Lubrizol, acquired in 2011 for $9 billion. The deal also comes ahead of Warren Buffett's planned transition of the CEO role to Vice Chair Greg Abel in January 2026, though Buffett will remain as chairman.

For Occidental, the divestiture allows the company to strengthen its balance sheet by reducing debt, enabling a sharper focus on its core oil and gas operations. The sale is part of Occidental's broader strategy to manage its debt following significant acquisitions in recent years.

The transaction is subject to regulatory approvals and other customary closing conditions. Both companies anticipate completing the deal by the end of 2025.