Berkshire Hathaway to Acquire Occidental’s OxyChem Unit for $9.7B
Berkshire Hathaway has reached an agreement to acquire Occidental Petroleum’s chemical business, OxyChem, in an all-cash deal valued at $9.7 billion. Occidental said it will apply $6.5 billion of the proceeds toward debt repayment, a move that will help the company reach its target of reducing principal debt below $15 billion following its December 2023 CrownRock acquisition.
As part of the transaction, an Occidental subsidiary will retain OxyChem’s legacy environmental liabilities, with Glenn Springs Holdings Inc. continuing to manage remedial projects.
“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,” said Occidental president and CEO Vicki Hollub. “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.”
OxyChem is a global manufacturer of commodity chemicals with applications spanning water treatment, pharmaceuticals, healthcare, and residential and commercial development.
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,” said Greg Abel, vice chair of non-insurance operations at Berkshire Hathaway. “We commend Vicki and the Occidental team for their commitment to long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company’s balance sheet.”
Occidental’s financial advisor on the deal is Barclays, with legal counsel from Cravath, Swaine & Moore LLP. The acquisition is expected to close in the fourth quarter of 2025.