"Berkshire Hathaway is buying Occidental Petroleum's chemical division for $9.7 billion in what may be the last big acquisition involving the consummate dealmaker, Warren Buffett. Buffett wasn't mentioned anywhere in materials released by Berkshire Hathaway discussing the deal Thursday, potentially signaling a passing of the torch to Vice Chair Greg Abel, to whom Buffet will hand the CEO title in January."
"OxyChem makes things like chlorine for water treatment, vinyl chloride for plastics, and calcium chloride that's used to treat icy roads along with an assortment of other chemicals. It will fit nicely within Berkshire alongside Lubrizol, which Buffett bought in 2011 for $9 billion. "Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team," Abel said in a prepared statement. "We look forward to welcoming OxyChem as an operating subsidiary within Berkshire.""
Berkshire Hathaway will buy Occidental Petroleum's chemical division, OxyChem, for $9.7 billion. Warren Buffett was not mentioned in Berkshire materials about the deal, and Vice Chair Greg Abel is poised to become CEO in January while Buffett remains chairman. Berkshire holds more than $344 billion in cash, a reserve that grew amid a lack of attractive large acquisition opportunities since the 2022 Alleghany purchase and higher deal prices driven by hedge fund activity. OxyChem produces chlorine, vinyl chloride and calcium chloride and generated $213 million in pretax earnings in the second quarter. Occidental has sold assets to reduce debt and expects to use $6.5 billion of proceeds from the transaction.
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