:max_bytes(150000):strip_icc()/Apple-News-Image---How-to-Invest-Like-Warren-Buffett-final-9c3f954d6d2d4677af76f5530292de13.jpg "Buffett’s Berkshire Is Making Its Biggest Acquisition in Years—What You Need to Know")
:max_bytes(150000):strip_icc():format(jpeg)/Apple-News-Image---How-to-Invest-Like-Warren-Buffett-final-9c3f954d6d2d4677af76f5530292de13.jpg)
KEY TAKEAWAYS
- Berkshire Hathaway has struck a $9.7 billion all-cash deal to buy OxyChem, the petrochemical division of Occidental Petroleum, in the largest acquisition by Warren Buffett’s conglomerate since 2022.
- Berkshire Hathaway has been focused on selling stakes and growing its cash pile rather than big-ticket purchases in recent years.
Berkshire Hathaway (BRK.A, BRK.B) has struck a $9.7 billion all-cash deal to buy the petrochemical division of Occidental Petroleum (OXY), in the largest acquisition by Warren Buffett’s conglomerate since 2022.
The two companies announced the transaction by Berkshire Hathaway for OxyChem early Thursday. Berkshire is already the largest shareholder in Occidental, and a pending deal had been widely reported ahead of the announcement.
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” said Greg Abel, Buffett’s successor. Abel, who is vice chair of non-insurance operations at Berkshire, is taking over as CEO at the end of the year.
Why This Matters
Investments by the “Oracle of Omaha” have always been closely monitored by investors, and Buffett’s move for OxyChem may be seen as a bet on the chemicals industry. The purchase could also be the 95-year-old investor’s last big deal before he steps down as CEO of Berkshire Hathaway at the end of the year.
The transaction is expected to close in the fourth quarter of 2025.
The deal is the largest by Berkshire since its 2022 purchase of insurer Alleghany for $11.6 billion and will be closely watched by investors. The conglomerate has been growing its cash pile lately by unwinding shares in companies like Apple (AAPL) and Bank of America (BAC), rather than making big-ticket acquisitions.
The OxyChem deal also marks Buffett’s second big bet on chemicals after Berkshire Hathaway’s acquisition of Lubrizol in 2011.
Occidental said it expects to use $6.5 billion of proceeds from the deal to cut its debt levels. “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,” Occidental CEO Vicki Hollub said.
Occidental shares were down about 7% in recent trading, while Berkshire Hathaway shares were little changed.
