Berkshire Hathaway in Talks to Acquire OxyChem for $10 Billion

Omaha, Nebraska – Berkshire Hathaway is reportedly in negotiations to acquire Occidental Petroleum‘s OxyChem unit for approximately $10 billion, according to a report from the Wall Street Journal on Tuesday. This potential sale would mark a significant transaction for Berkshire Hathaway and could finalize within days.

The OxyChem division provides essential products used in medical care, food security, and construction. This move is part of Occidental Petroleum’s strategy to offload non-core assets as it seeks to raise cash amid mounting debt.

Berkshire Hathaway, which is Occidental’s largest shareholder, currently owns about 27% of the Houston-based company’s outstanding shares. The conglomerate began purchasing its stake in February 2022, coinciding with the onset of the Russian invasion of Ukraine.

If the deal is finalized, it would be Berkshire Hathaway’s largest acquisition since its $11.6 billion purchase of Alleghany, which occurred in 2022. Berkshire has built a cash reserve nearing $350 billion and has been strategically looking for investment opportunities.

Occidental Petroleum has faced challenges due to a heavy debt load, stemming from its 2019 acquisition of Anadarko Petroleum for $55 billion and the purchase of CrownRock last year. As of June 2024, Occidental’s debt was reported at $23.34 billion.

Though Berkshire Hathaway has considerable cash, the company does not intend to finance the OxyChem purchase using Occidental stock, according to additional reports. The OxyChem unit generated $2.42 billion in revenue during the first half of 2025.

The potential acquisition comes as Warren Buffett prepares to step down as CEO of Berkshire Hathaway at the end of 2025, although he will remain as chairman. His successor, Greg Abel, has extensive experience in the energy sector, positioning Berkshire for future ventures in the industry.

As news of the deal circulated, shares of Occidental Petroleum fell by 1.8% on Tuesday, while Berkshire Hathaway shares experienced a slight dip of about 1% but have gained nearly 10% since the beginning of the year.