In a recent news report by Dajiyuan on October 3, 2025, it was announced that Warren Buffett’s Berkshire Hathaway company has acquired the petrochemical division of Occidental Petroleum for $9.7 billion.
According to the Financial Times, this marks the first deal planned since Greg Abel, Berkshire’s Vice Chairman of non-insurance businesses, was appointed as Buffett’s successor.
Berkshire Hathaway stated in a press release on Thursday, October 2, that the transaction is expected to be completed in the fourth quarter. Occidental Petroleum’s stock price fell by 4.6% at one point, while Berkshire Hathaway’s Class B shares rose by 0.2%.
Abel commented, “Berkshire is acquiring a stable operating asset portfolio supported by an experienced team.”
Occidental Petroleum revealed that it will sell its OxyChem business to Berkshire Hathaway in an all-cash transaction, as part of the company’s plan to reduce $24 billion in long-term debt.
OxyChem is one of the largest independent producers of petrochemical products globally, comparable in scale to companies like Dow Chemical and LyondellBasell.
Occidental Petroleum is one of the largest oil and gas producers in the United States, with Berkshire Hathaway as its largest shareholder holding 29.6% of its shares.
This deal marks Berkshire’s largest transaction since the $11.6 billion acquisition of the insurance group Alleghany in 2022. As of the end of June 2025, Buffett’s company had a total cash reserve of $344 billion, nearing its historical peak.
Occidental Petroleum stated that it plans to utilize $6.5 billion from the transaction to reduce net debt, aiming to keep the group’s debt below $15 billion.
According to sources familiar with the matter, the entire transaction will be conducted in cash and not through Berkshire’s stake in Occidental Petroleum, indicating that the deal is aimed at helping the oil and gas group alleviate its debt burden.
Berkshire Hathaway already owns the chemical group Lubrizol. Currently, the entire industry is facing a downturn with low demand, oversupply, and tariffs impacting revenues.