Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting successful Omaha, Nebraska connected May 3, 2025.
CNBC
Warren Buffett's Berkshire Hathaway announced Thursday it reached a woody to bargain Occidental Petroleum's petrochemical unit, OxyChem, for $9.7 cardinal successful cash.
The woody marks Berkshire's largest since 2022, erstwhile it paid $11.6 cardinal for insurer Alleghany. It besides comes astatine a clip successful which the conglomerate is sitting connected $344 cardinal successful cash, a grounds for the company.
Berkshire is already a large capitalist successful Occidental, holding a 28.2% involvement arsenic of the extremity of June. Buffett — who is 95 and stepping down arsenic CEO astatine the extremity of the twelvemonth — has said helium wouldn't instrumentality implicit power of the lipid company.
Buffett began buying Occidental banal successful the unfastened marketplace successful 2022, taking vantage of heightened marketplace volatility to scoop shares astatine cheaper levels.
OxyChem manufactures h2o treatment, healthcare and different commercialized chemicals. Occidental said it volition usage $6.5 cardinal of the proceeds to wage down debt.
"We look guardant to welcoming OxyChem arsenic an operating subsidiary wrong Berkshire," said Greg Abel, Vice Chairman of Non-Insurance Operations astatine Berkshire, successful a property release. Abel, who volition regenerate Buffett arsenic CEO of Berkshire successful 2026, added that Occidental CEO Vicki Hollub is showing her "commitment to Occidental's semipermanent fiscal stability, arsenic demonstrated by their program to usage proceeds to reenforce the company's equilibrium sheet."
Both companies expect the woody to adjacent successful the 4th quarter. The Wall Street Journal archetypal reported connected the transaction earlier this week.
Subscribe to CNBC PRO for exclusive insights and analysis, and unrecorded concern time programming from astir the world.
English (US) ·