Berkshire Hathaway Explores $10B OxyChem Acquisition, Buffett's Biggest Deal Yet
Berkshire Hathaway, led by Warren Buffett, is exploring a significant expansion into the chemicals sector. The company is in talks to acquire Occidental Petroleum's chemical arm, OxyChem, for around $10 billion. This deal, if finalised, would be Buffett's second major foray into chemicals after purchasing Lubrizol in 2011.
The proposed acquisition would be Berkshire Hathaway's largest purchase since its $11.6 billion acquisition of Alleghany in 2022. Occidental Petroleum, with a market value of about $46 billion, has been considering selling OxyChem to reduce its debt. OxyChem generated nearly $5 billion in sales in the last 12 months.
Buffett, who is set to retire as CEO of Berkshire Hathaway at the end of 2025, with Greg Abel taking over, is preparing for this transition. Berkshire Hathaway currently has a record $344 billion in cash and Treasury bills as of the end of June 2025, providing ample resources for such a purchase.
The potential acquisition of OxyChem by Berkshire Hathaway, if the transaction closes, would mark a substantial step into the chemicals sector for the company. It would also be one of the largest purchases made by Berkshire Hathaway in recent years, demonstrating the company's continued appetite for strategic acquisitions.
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