Berkshire Hathaway's $9.7B Acquisition of Occidental's Petrochemical Division
Berkshire Hathaway, led by CEO Warren Buffett, has made a significant move, acquiring Occidental Petroleum's petrochemical division, OxyChem, for $9.7 billion. This is the largest acquisition by the company since 2022. The deal, which is expected to pay off in the long run for both Berkshire Hathaway and the Investment Legends Index, involves Occidental using $6.5 billion of the proceeds to reduce its debt and resume share buybacks. The new CEO of Occidental Petroleum, Vicki Hollub, will oversee this process following the sale of its petrochemical division to Berkshire Hathaway. OxyChem produces chemicals for various applications, including water treatment and healthcare. Berkshire Hathaway, with its substantial cash reserves recently at $344 billion, has seen its stock gain around 10% since the beginning of the year, despite a slight dip of 0.3% today. Occidental's stock is up around 1% in pre-market trading, nearing resistance at $48.10. Occidental Petroleum, a major shareholder of Berkshire Hathaway since 2019, has sold its petrochemical division to the company for $9.7 billion. This significant acquisition, Berkshire Hathaway's largest since 2022, is expected to benefit both parties in the long run. Occidental plans to use the proceeds to reduce debt and resume share buybacks under the leadership of its new CEO, Vicki Hollub.
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