Warren Buffett speaks throughout the Berkshire Hathaway Annual Shareholders Assembly in Omaha, Nebraska on Could 3, 2025.
CNBC
Warren Buffett’s Berkshire Hathaway introduced Thursday it reached a deal to purchase Occidental Petroleum’s petrochemical unit, OxyChem, for $9.7 billion in money.
The deal marks Berkshire’s largest since 2022, when it paid $11.6 billion for insurer Alleghany. It additionally comes at a time wherein the conglomerate is sitting on $344 billion in money, a report for the corporate.
Berkshire is already a significant investor in Occidental, holding a 28.2% stake as of the top of June. Buffett — who’s 95 and stepping down as CEO on the finish of the yr — has stated he would not take full management of the oil firm.
OxyChem manufactures water remedy, healthcare and different industrial chemical substances. Occidental stated it should use $6.5 billion of the proceeds to pay down debt.
“We stay up for welcoming OxyChem as an working subsidiary inside Berkshire,” stated Greg Abel, Vice Chairman of Non-Insurance coverage Operations at Berkshire, in a press launch. Abel, who will change Buffett as CEO of Berkshire in 2026, added that Occidental CEO Vicki Hollub is exhibiting her “dedication to Occidental’s long-term monetary stability, as demonstrated by their plan to make use of proceeds to bolster the corporate’s steadiness sheet.”
Each firms count on the deal to shut within the fourth quarter. The Wall Road Journal first reported on the transaction earlier this week.
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