Occidental is done with monster dealmaking after reaching its asset-sales target with the $9.7 billion chemical-unit sale to Berkshire Hathaway https://t.co/eluSFuNih8 ...

Core Viewpoint - Occidental Petroleum (OXY.US) shares declined over 5.8% to $44.925, reversing earlier gains, following the announcement of Berkshire Hathaway's $9.7 billion acquisition of Occidental's chemical business, OxyChem, marking Berkshire's largest acquisition since 2022 [1] Group 1 - Berkshire Hathaway will acquire OxyChem for $9.7 billion, which is the largest acquisition by Berkshire since 2022 [1] - Occidental Petroleum plans to use $6.5 billion from the transaction to pay down debt, aiming to reduce its total debt to below $15 billion [1]

Core Viewpoint - Western Oil's stock price declined over 5.8% to $44.925, reversing its pre-market gains following the announcement of Berkshire Hathaway's $9.7 billion acquisition of its chemical subsidiary OxyChem, marking Berkshire's largest acquisition since 2022 [1] Group 1 - Berkshire Hathaway will acquire OxyChem for $9.7 billion, which is the largest acquisition by Berkshire since 2022 [1] - Western Oil plans to use $6.5 billion from the transaction to pay down debt, aiming to reduce its total debt to below $15 billion [1]

Welcome to Yahoo Finance's flagship show, The Morning Brief. I'm Ally Canel. Let's get to the three things you need to know today.First up, tech stocks are powering futures higher this morning. The rally in stock spurred by AI giant Open AI, which just became the world's most valuable company. According to new reports, OpenAI's valuation is now $500 billion after current and former employees sold about $6.6% 6 billion worth of stock, boosting the company's price tag well above its previous $300 billion leve ...

Occidental Petroleum's $9.7 billion sale of its chemicals division is an exercise in repairing damage that helps Warren Buffett reverse a losing investment, says @liamdenning. (via @opinion) https://t.co/piyGL317cu ...

Core Viewpoint - Berkshire Hathaway is set to acquire Occidental Petroleum's Chemicals unit for approximately $9.7 billion in an all-cash transaction, marking its largest acquisition in three years [1] Group 1: Acquisition Details - The acquisition price of $9.7 billion allows Occidental to reduce its leverage, which is notably high compared to its peers [2] - Berkshire Hathaway already holds a significant stake in Occidental, owning about $11 billion worth of Oxy stock, which indicates a strong interest in the parent company [2] Group 2: Industry Context - The deal reflects a broader trend in the heavy industry sector, where companies are focusing on debt reduction and divesting parts of their business [3] - Occidental's high leverage was partly due to previous acquisitions, which limited its financial flexibility, necessitating this transaction [4] - The chemical industry is currently experiencing trough cycle earnings, presenting both challenges for Occidental and opportunities for Berkshire [4][5]

Group 1 - The stock price of Occidental Petroleum has dropped by 5.3%, marking the largest decline since July 15 [1]

Core Insights - Berkshire Hathaway Inc. has signed an agreement to acquire Occidental Petroleum Corporation's petrochemical subsidiary, OxyChem, for approximately $9.7 billion in cash [1][2] - The transaction is expected to close in the fourth quarter of 2025 and will be Berkshire's largest deal since its $13.7 billion acquisition of Alleghany Corp. in 2022 [2] - OxyChem specializes in producing essential chemicals such as chlorine, sodium hydroxide, and PVC resins, generating roughly $5 billion in revenue over the past 12 months [3] Company Developments - Occidental Petroleum, 27% owned by Berkshire, is actively deleveraging after significant acquisitions, including a $55 billion purchase of Anadarko in 2019 [4] - The company currently has $24 billion in debt, down from nearly $49 billion post-Anadarko, and plans to use $6.5 billion from the OxyChem sale to further reduce this debt [4] - Occidental has executed nearly $4 billion in divestments since early 2024, indicating a strategic shift towards simplifying its portfolio and enhancing capital returns to shareholders [5] Industry Context - The acquisition of OxyChem marks a significant move in the petrochemical sector, as it is expected to be one of the largest standalone petrochemical transactions globally, valued near $10 billion [2] - The deal comes amid industry challenges, including oversupply and shrinking margins, leading Occidental to close a chapter in its decades-long chemicals business [6] - The acquisition strengthens Berkshire Hathaway's ties with Occidental, as the firm has been gradually increasing its equity stake in the company [5]

Core Points - Occidental Petroleum (OXY.US) experienced a short-term decline of nearly 5%, trading at $45.4. This drop follows the announcement that Berkshire Hathaway will acquire Occidental's chemical business, OxyChem, for $9.7 billion, marking Berkshire's largest acquisition since 2022 [1] - Occidental plans to use the $6.5 billion proceeds from the transaction to pay down debt, aiming to reduce its primary debt to below $15 billion [1] Group 1 - Occidental Petroleum's stock price fell nearly 5% to $45.4 following the acquisition announcement [1] - Berkshire Hathaway's acquisition of OxyChem for $9.7 billion is the largest since 2022 [1] - Occidental intends to utilize $6.5 billion from the sale to lower its debt [1] Group 2 - The goal of Occidental is to reduce its primary debt to below $15 billion [1]

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, has announced a $9.7 billion cash acquisition of Occidental Petroleum's chemical business, OxyChem, marking its largest deal since acquiring Alleghany for $11.6 billion in 2022. This transaction indicates a potential shift in Buffett's strategy towards more aggressive acquisitions after a period of divestment from major holdings like Apple [1][4]. Group 1: Transaction Details - The acquisition is valued at $9.7 billion and is expected to close in the fourth quarter [5]. - Berkshire Hathaway currently holds a 28.2% stake in Occidental Petroleum as of June [4]. - Occidental plans to use $6.5 billion from the sale to pay down debt, which will enable the company to restart its stock buyback program [4]. Group 2: Company Insights - OxyChem produces essential chemicals, including chlorine and caustic soda [4]. - Occidental's CEO, Vicki Hollub, emphasized that the debt reduction from this transaction will enhance shareholder confidence and attract new investors [4]. - The last major acquisition by Berkshire in the chemical sector was in 2011 when it purchased Lubrizol for approximately $10 billion [4]. Group 3: Market Reaction - Following the announcement, Occidental Petroleum's stock price rose by 1.4% in pre-market trading [3].