Berkshire Hathaway and Occidental have reached an agreement for Berkshire Hathaway to acquire Occidental’s chemical business, OxyChem, in a transaction valued at $9.7 billion in cash. The deal is subject to customary purchase price adjustments and regulatory approvals, with closing expected in the fourth quarter of 2025.
OxyChem produces commodity chemicals used in sectors such as water treatment, pharmaceuticals, healthcare, and construction. According to Occidental, the sale will allow the company to focus on its oil and gas operations while improving its financial position.
“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. I’m incredibly proud of the impressive work the team has done to create this strategic opportunity that will unlock 20+ years of low-cost resource runway and deliver meaningful near and long-term value,” said Vicki Hollub, President and Chief Executive Officer. “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. 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.”
Occidental plans to use $6.5 billion from the sale proceeds to reduce debt with a goal of bringing principal debt below $15 billion. This target was set after its acquisition of CrownRock in December 2023.
An Occidental subsidiary will retain OxyChem’s legacy environmental liabilities. Glenn Springs Holdings Inc., another subsidiary, will continue managing existing remedial projects related to these liabilities.
Barclays acted as financial advisor for Occidental on this transaction; Cravath, Swaine & Moore LLP served as legal counsel.
Berkshire Hathaway operates across several industries including insurance, utilities, energy, rail transportation, manufacturing, services and retailing. Its shares trade on the New York Stock Exchange under BRK.A and BRK.B.
Occidental remains one of the largest oil and gas producers in the United States with additional assets in the Middle East and North Africa.
