Berkshire Hathaway and Occidental Petroleum Corp announced that they have entered into a definitive agreement for Berkshire Hathaway to acquire Occidental’s chemical business, OxyChem, in an all-cash transaction valued at $9.7 billion, subject to customary purchase price adjustments.
OxyChem is a global manufacturer of commodity chemicals used across multiple sectors, including water treatment, pharmaceuticals, healthcare, and commercial and residential development.
“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 of Occidental. “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.”
Occidental will sell OxyChem to Berkshire Hathaway for $9.7 billion in cash
Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire Hathaway, said, “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.”
Under the terms of the agreement, Occidental will sell OxyChem to Berkshire Hathaway for $9.7 billion in cash, subject to customary adjustments. Occidental plans to allocate $6.5 billion of the proceeds toward debt reduction to meet its target of lowering principal debt below $15 billion, a goal established following its December 2023 acquisition of CrownRock.
An Occidental subsidiary will retain OxyChem’s legacy environmental liabilities, with Glenn Springs Holdings Inc. continuing to manage existing remedial projects for that subsidiary.
The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals and customary closing conditions. Further details are available in a presentation posted on the investor section of Occidental’s website.
