Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) agreed to acquire Occidental Petroleum’s (NYSE:OXY) chemical business for $9.7B in cash, the companies said on Thursday, adding a non-insurance asset to the investing behemoth’s sprawling collection of fully owned businesses.
On Tuesday, the Wall Street Journal had reported that the two companies were nearing a ~$10B deal for the business after the Financial Times reported on Sunday that Occidental was in talks with an unnamed potential buyer.
Occidental (NYSE:OXY) plans to use the deal’s proceeds to immediately repay ~$6.5B of debt, with the remaining ~$1.5B of after-tax proceeds going to its balance sheet. That’s expected to result in more than $350M of annual interest expense savings. The company said it will also improve the company’s credit metrics and enhance its financial flexibility, according to an investor presentation.
“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,” said Oxy President and CEO Vicki Hollub.
Greg Abel, vice chairman of non-insurance operations at Berkshire (NYSE:BRK.B), said, “Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team.” Meanwhile, the acquisition, though, will barely dent the company’s cash pile, which stood at $344.1B at June 30, 2025.
Occidental Petroleum’s (NYSE:OXY) stock gained 1.6%, and Berkshire Hathaway’s (NYSE:BRK.B) B shares, the more widely traded of its two stock classes, slipped 0.2% in Thursday premarket trading.