Berkshire Hathaway has agreed to acquire Occidental Petroleum's chemical subsidiary, OxyChem, in an all-cash deal valued at $9.7 billion.
The transaction, subject to customary adjustments and regulatory approvals, is expected to close in the fourth quarter of 2025.
Under the terms of the agreement, Occidental will allocate $6.5 billion of the proceeds to reduce debt, with the aim of bringing total principal debt below $15 billion. The target was set following its 2023 acquisition of CrownRock.
While OxyChem’s operations will move to Berkshire, Occidental will retain responsibility for legacy environmental liabilities, with Glenn Springs Holdings Inc. continuing to manage related remediation projects.
OxyChem is a global producer of commodity chemicals used in critical industries, including water treatment, pharmaceuticals, healthcare and real estate development. The business has long been recognized as a steady generator of earnings for Occidental, even during periods of oil price volatility.
For Berkshire, the acquisition brings another industrial platform into its portfolio of operating subsidiaries, reinforcing the conglomerate's strategy of investing in essential businesses with consistent long-term demand.
Occidental president and CEO Vicki Hollub (pictured above) said the sale supports the company's energy-focused growth strategy. She noted that the deal will strengthen Occidental's financial position and accelerate development of its oil and gas business. Hollub added that OxyChem has grown into a well-managed business with a skilled workforce and expressed confidence that both would continue to thrive under Berkshire Hathaway.
Greg Abel, vice chairman of non-insurance operations at Berkshire Hathaway, said OxyChem represents a robust portfolio of operating assets supported by an accomplished team. He emphasized that OxyChem would operate as a Berkshire subsidiary and praised Occidental for taking steps to reinforce its balance sheet with the transaction proceeds.
The move comes as energy companies seek to balance shareholder returns with the long-term investment needed to develop low-cost resources and navigate the transition to lower-carbon energy.
For Berkshire Hathaway, the deal highlighted its long-standing approach of investing in fundamental industries that underpin the global economy. Commodity chemicals, while cyclical, remain vital to infrastructure, housing, and healthcare, giving OxyChem’s business a demand base that aligned with Berkshire’s preference for resilient, cash-generating operations.
