New York — Warren Buffett’s Berkshire Hathaway has announced its biggest acquisition in three years, with plans to buy OxyChem, the chemical arm of Occidental, for $9.7 billion in cash.
The deal, revealed Thursday, marks Buffett’s largest purchase since the $11.6 billion acquisition of insurer Alleghany in 2022. It also comes as the 95-year-old investor prepares to step down as Berkshire’s CEO at the end of the year.
Of the $9.7 billion, about $6.5 billion will go toward reducing Occidental’s debt, which currently exceeds $20 billion. OxyChem produces essential chemicals used in everyday items like IV bags, swimming pools, pulp and paper, aluminum production, and even battery recycling.
Occidental CEO Vicki Hollub praised the move, saying OxyChem has become a “well-run, safely operated business” and expressed confidence in its growth under Berkshire’s ownership.
Shares of Occidental (OXY) rose slightly—less than 1%—in premarket trading following the announcement. The acquisition is expected to be finalized in the fourth quarter of this year.
This deal underscores Buffett’s ongoing influence in shaping Berkshire’s portfolio while cementing his reputation for making bold, long-term bets on industries he sees as essential.
