Oxy Sells Chemicals Business to Berkshire Hathaway for $9.7 Billion
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Berkshire Hathaway and Occidental have entered into a definitive agreement for Berkshire Hathaway to acquire Occidental’s chemical business, OxyChem, in an all-cash transaction for $9.7 billion, subject to customary purchase price adjustments.
“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. I’m incredibly proud of the impressive work the team has done to create this strategic opportunity that will unlock 20+ years of low-cost resource runway and deliver meaningful near and long-term value,” said Vicki Hollub, Occidental president and chief executive officer.
“OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership,” added Hollub.
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” said Greg Abel, vice chairman of Non-Insurance Operations at Berkshire.
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire. We commend Vicki and the Occidental team for their commitment to Occidental’s long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company’s balance sheet,” added Abel.
An Occidental subsidiary will retain OxyChem’s legacy environmental liabilities, and Glenn Springs Holdings will continue to manage existing remedial projects for that subsidiary. The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and other customary closing conditions.
Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. They are one of the largest oil and gas producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of America. Their midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas, and includes their Oxy Low Carbon Ventures subsidiary, which is advancing leading-edge technologies and business solutions that economically grow their business while reducing emissions. Their chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products.
Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing.
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