Warren Buffett’s Berkshire Hathaway is reportedly nearing a deal to buy Occidental Petroleum’s petrochemical unit for around US$10 billion (A$15.13 billion), as Occidental seeks to unload its assets.
The deal could be finalised within days, the Wall Street Journal reported. The OxyChem subsidiary manufactures chemical products like polyvinyl chloride and chlorine.
Occidental has been divesting assets in recent years to reduce its debt. It said in an August earnings release that it had completed “$950 million of additional divestitures since the start of the second quarter of 2025, of which approximately $370 million has already closed”.
The company said it had $23.34 billion in net long-term debt at the end of 2025’s second quarter, having repaid $3.0 billion of its debt in the year’s first half.
The OxyChem subsidiary’s pre-tax income was $213 million in Q2, down from $296 million year-over-year.
Berkshire is Occidental’s largest shareholder, owning a 27% stake. In 2019, it pledged $10 billion to support Occidental’s $55 billion purchase of Anadarko Petroleum.
The OxyChem acquisition would be Berkshire’s largest since 2022, when it bought insurance provider Alleghany Corporation for $11.6 billion.
Berkshire does not plan to finance the OxyChem purchase with Occidental stock, the Financial Times reported. Berkshire currently has almost $350 billion in cash.
Buffet is set to step down as Berkshire’s CEO at the end of 2025. He will be replaced by Berkshire Hathaway Energy CEO Greg Abel.
Occidental’s (NYSE: OXY) share price closed at $47.25, down from its previous close at $48.10. Its market capitalisation is $46.51 billion.
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