Berkshire Hathaway Inc. is set to acquire Occidental’s chemical business, OxyChem, in an all-cash transaction worth $9.7 billion (subject to customary purchase price adjustments). OxyChem specialises in the manufacturing of commodity chemicals that boost quality of life, like water treatment, pharmaceuticals, healthcare, commercial and residential development applications.
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Berkshire Hathaway Inc acquires Occidental’s chemical business, OxyChem.
“This transaction strengthens our financial position and catalyses 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.”
“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. “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.”
Transaction details
Occidental is set to sell OxyChem to Berkshire Hathaway for $9.7 billion, subject to customary purchase price adjustments. The company is planning to use $6.5 billion of the transaction proceeds to reduce debt with the goal of achieving the target of principal debt below $15 billion, following its CrownRock acquisition announcement in December 2023. An Occidental subsidiary will retain OxyChem’s legacy environmental liabilities, and Glenn Springs Holdings Inc. will continue to manage existing remedial projects for said subsidiary.
The transaction is expected to close in the fourth quarter of 2025.