Berkshire Hathaway has struck a deal to acquire OxyChem, the chemical division of Occidental Petroleum, in an all-cash transaction worth USD9.7 billion, subject to customary adjustments.
The acquisition adds a major industrial asset to Warren Buffett’s conglomerate, making OxyChem a new operating subsidiary under the Berkshire umbrella. OxyChem is a leading global manufacturer of commodity chemicals essential to sectors such as water treatment, healthcare, pharmaceuticals, and residential and commercial development.
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” said Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire Hathaway. “We look forward to welcoming OxyChem as part of Berkshire’s family of businesses.”
Occidental CEO Vicki Hollub said the divestment strengthens the company’s financial foundation and supports its long-term strategy in oil and gas. “This transaction catalyzes a significant resource opportunity we’ve built over the last decade, unlocking 20+ years of low-cost resource potential,” she said.
Occidental will use USD6.5 billion of the proceeds to reduce debt, in line with its goal of bringing principal debt below USD15 billion following its CrownRock acquisition in 2023. The company will retain OxyChem’s legacy environmental liabilities, which will continue to be managed by Glenn Springs Holdings Inc.
The deal is expected to close in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions.
For Berkshire Hathaway, the deal adds another industrial engine to its vast portfolio, which spans insurance, utilities, freight rail, manufacturing, and retail.
Occidental, meanwhile, sharpens its focus as a top U.S. oil and gas producer with assets across the United States, Middle East, and North Africa.
