On October 2, 2025, local time, both Berkshire Hathaway and Occidental Petroleum announced on their official websites that Berkshire would acquire OxyChem, a subsidiary of Occidental's chemical business, in a $9.7 billion all-cash deal. OxyChem specializes in chemical products for healthcare, food safety, and construction, generating nearly $5 billion in sales over the year ending June 2025 and $242 million in revenue during the first two quarters of 2025. However, its capital-intensive nature conflicts with Occidental's strategic shift toward its core energy business. In August 2025, due to oversupply of key products, Occidental revised its annual pre-tax earnings guidance for this business from $1 billion to a range of $800-900 million, which may have prompted the decision to sell. Occidental expects to use $6.5 billion from the proceeds to reduce debt, aiming to meet its target of keeping principal debt below $15 billion set after its acquisition of CrownRock in December 2023. Occidental CEO Vicki Hollub stated that this transaction addresses the company's debt reduction needs, will free up its stock price, provide shareholders with greater reassurance, and enable the resumption of a stock repurchase program. Currently, Berkshire is Occidental's largest shareholder, holding approximately 27% of its outstanding shares. The deal is expected to close in the fourth quarter of 2025.

Author of this news: Ding Shuhan

Date: October 9th, 2025