Warren Buffett’s Berkshire Hathaway is spending billions of dollars to purchase Occidental’s chemical business, its largest acquisition in three years.
In a new announcement, Berkshire says it has entered into a definitive agreement with Occidental to purchase OxyChem for $9.7 billion.
OxyChem manufactures chemicals used for water treatment, pharmaceuticals, healthcare and commercial and residential development.
Says Greg Abel, Berkshire’s vice chairman of non-insurance operations,
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team. We look forward to welcoming OxyChem as an operating subsidiary within Berkshire.”
Occidental, an international energy company, intends to use $6.5 billion of proceeds to reduce its debt.
Says Vicki Hollub, Occidental’s president and CEO,
“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.”
Berkshire’s last larger purchase was in 2022 when it spent $11.6 billion to acquire insurance company Alleghany Corporation.
Meanwhile, Berkshire has been selling off shares in top US banks, including Bank of America, JPMorgan Chase and Wells Fargo.
Filings with the U.S. Securities and Exchange Commission (SEC) show Berkshire Hathaway unloaded 26,306,156 shares in Bank of America for around $47.57 per share in the second quarter of the year and also unloaded 48.7 million Bank of America shares in Q1, worth about $2.19 billion.
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