Warren Buffett’s Berkshire Hathaway said it will buy Occidental Petroleum’s petrochemical business for $9.7 billion in cash https://t.co/Fh1kqhh4YQ ...

Berkshire Hathaway Buys Occidental’s OxyChem For $9.7 Billion—Buffett’s Largest Deal In Yearshttps://t.co/zc2PxjWfWT https://t.co/ZJmYiwfkVg ...

Group 1 - Berkshire Hathaway announced its largest acquisition in years, acquiring Occidental Petroleum's chemical division, OxyChem, for $9.7 billion [1] - This acquisition may be one of Warren Buffett's last major transactions before handing over the CEO position to Vice Chairman Greg Abel in January [1] - The deal indicates Buffett's return to the M&A market after years of minimal large-scale acquisitions and gradual divestment from major holdings like Apple [1] Group 2 - The acquisition is expected to be completed in the fourth quarter, with Berkshire's cash reserves reaching approximately $344 billion, close to historical highs [1] - Occidental Petroleum has announced nearly $4 billion in asset sales since early last year to reduce debt incurred from acquiring CrownRock LP for $10.8 billion [1] - OxyChem produces basic chemicals such as chlorine and sodium hydroxide, and its sale marks the end of a long chapter for Occidental in the chemical industry [2] Group 3 - Occidental's chemical division has seen declining sales in recent years, with a 15% reduction in expected pre-tax profits for the year due to market oversupply of key products [2] - The company plans to use $6.5 billion from the sale of OxyChem to reduce its main debt below $15 billion [1][2]

Market Overview - US stock index futures showed mixed performance ahead of the market opening, with Dow futures down 0.02%, S&P 500 futures up 0.25%, and Nasdaq futures up 0.49% [1] - European indices also experienced gains, with Germany's DAX up 1.27%, UK's FTSE 100 up 0.04%, France's CAC40 up 1.41%, and the Euro Stoxx 50 up 1.52% [2][3] Oil Prices - WTI crude oil prices fell by 0.42% to $61.52 per barrel, while Brent crude oil prices decreased by 0.44% to $65.06 per barrel [3][4] Employment Data - The ADP employment report indicated a surprising decrease of 32,000 jobs in September, contrasting with Wall Street's expectation of an increase of 45,000, suggesting a significant deterioration in the US job market [5] - The September manufacturing PMI in the US recorded at 49.1, indicating continued contraction for the seventh consecutive month, although the output index returned to expansion at 51 [6] Layoff Statistics - US employers announced 54,064 layoffs in September, a decrease of 37% from August and a 26% drop from the same month last year, with year-to-date layoffs totaling 946,426, the highest since 2020 [7] Federal Reserve Insights - FOMC member Goolsbee noted that the government shutdown complicates the Federal Reserve's ability to interpret economic conditions due to a lack of official data [8] EU Trade Policy - The EU plans to significantly increase steel import tariffs to 50% to protect its domestic steel industry, aligning its tariff levels with those of the US [8] Investment Trends - Goldman Sachs remains bullish on gold, citing strong interest from private investors, with expectations that gold prices could rise to $4,300 per ounce by the end of next year [9] Corporate Developments - AMD is reportedly in talks with Intel for potential chip manufacturing collaboration, which could significantly enhance Intel's foundry business [10] - Berkshire Hathaway announced a $9.7 billion acquisition of Occidental Petroleum's chemical division, marking a significant transaction for the company [10] - Stellantis reported a 6% increase in third-quarter vehicle sales in the US, reaching 324,825 units, with notable growth in Jeep and Chrysler brands [11]

Well, it's official. Bergkshire Hathway is acquiring accidental chemical business Oxy Chem. It's an allcash transaction.It's valued at $9.7% billion, and this is Bergkshire's biggest purchase since 2022. Joining us right now is Vicky Holliff. She is Accidental Petroleum CEO.And Vicki, first of all, thanks for being here this morning. We appreciate it. >> Thank you.I appreciate the opportunity, Becky. >> Let's talk a little bit about this deal, how it came together, and $9.7% billion in cash. What do you pla ...

Acquisition Overview - Berkshire Hathaway is acquiring Occidental Chemical for an all-cash transaction valued at $9.7 billion, marking its largest purchase since 2022 [1] Financial Strategy - Occidental plans to allocate approximately $6.5 billion of the cash from the acquisition towards debt reduction, aiming to bring its debt below the target of $15 billion, which will subsequently reduce interest payments by $350 million [2][7] - The acquisition will enable Occidental to restart its share repurchase program, enhancing shareholder value [3] Portfolio Enhancement - The acquisition follows Occidental's previous acquisition of Crown Rock, which established the Midland Basin as a core area and allowed for the development of a strong position in the Barnett area [4][6] - Occidental's portfolio now includes decades of development opportunities in oil and gas, with advanced technology and processes being applied to improve it further [5] Production and Resource Growth - Since 2015, Occidental has increased its U.S. production from 50% to 83%, focusing on high-quality areas such as the Permian, DJ, Powder River, and Gulf of Mexico [10] - The company has also increased its oil and gas resources from 8 billion barrels of oil equivalent in 2015 to 14 billion, with expectations for further increases by year-end [11] Market Performance - Over the past five years, Occidental's stock has appreciated by 390%, although it has seen a decline of nearly 10% over the last year [8][9] - The company believes that resolving its debt issue will unlock stock value and encourage both existing and new shareholders to invest [10]

Core Viewpoint - Berkshire Hathaway is set to acquire Occidental Petroleum's chemical business, OxyChem, for $9.7 billion in cash, representing its largest acquisition since the $11.6 billion purchase of Precision Castparts in 2016 [1] Group 1 - The acquisition of OxyChem marks a significant strategic move for Berkshire Hathaway, enhancing its portfolio in the chemical sector [1] - The deal highlights Berkshire Hathaway's continued interest in the energy and chemical industries, reflecting a broader trend of consolidation in these sectors [1] - This transaction is expected to strengthen Berkshire Hathaway's operational capabilities and market position within the chemical industry [1]

Core Insights - Berkshire Hathaway plans to acquire OxyChem from Occidental Petroleum for $9.7 billion, marking its largest deal in three years and potentially the last under Warren Buffett's leadership as CEO [1][2] Group 1: Acquisition Details - OxyChem is a leading petrochemical company specializing in PVC production, which is utilized in various applications including pipes, medical supplies, and electrical conduits [1] - The acquisition is expected to close in the fourth quarter, with OxyChem planning to use $6.5 billion of the proceeds to reduce its debt [2] Group 2: Management and Future Leadership - Greg Abel, Vice Chairman of Non-Insurance Operations and incoming CEO, expressed enthusiasm about integrating OxyChem into Berkshire Hathaway and praised Occidental's commitment to financial stability [2] - Warren Buffett, who is 95 years old, announced plans to step down as CEO by the end of 2025 but will continue as chairman, with Abel taking over the CEO role [4]

Core Insights - Proactive is a financial news and online broadcast organization that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's editorial and broadcast operations are managed by a seasoned team, ensuring quality control and content production across multiple global locations [1] Company Operations - Proactive operates with a team of experienced news journalists across key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - The organization produces approximately 50,000 pieces of real-time news, feature articles, and filmed interviews annually [1] - The company employs both human content creators and technology to enhance workflows, ensuring a blend of expertise and innovation in content production [4][5] Market Focus - Proactive delivers news and insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - The company aims to engage motivated private investors by providing content that excites and informs them about investment opportunities [3]

Group 1: Berkshire Hathaway and Occidental Petroleum Acquisition - Berkshire Hathaway is acquiring Occidental Petroleum's petrochemical division, OxyChem, for $9.7 billion in an all-cash transaction [2][7] - The acquisition is expected to close in the fourth quarter of 2025, pending regulatory approvals [2] - Occidental Petroleum plans to use approximately $6.5 billion of the proceeds to reduce its debt, targeting a principal debt level below $15 billion [2] - The remaining ~$1.5 billion (after-tax) will be added to Occidental's balance sheet, with anticipated annual interest expense savings of over $350 million [2] Group 2: Geopolitical Tensions and EU Financial Support - Russia issued a warning to the European Union regarding the use of frozen Russian assets for loans to Ukraine, calling the proposal "delusional" [3][7] - The EU plans to double its financial support to Greenland to over €530 million under its next long-term budget, aiming to enhance cooperation on critical raw materials and energy [4][7] - The EU views Greenland as strategically important in the Arctic amidst growing international interest [4] Group 3: U.S. Support for Argentina - U.S. Treasury Secretary Scott Bessent reaffirmed the U.S. commitment to supporting Argentina's economic stability, indicating readiness to assist President Javier Milei's economic policies [5][7] - Discussions include negotiating a $20 billion swap line with Argentina's central bank and potential purchases of U.S. dollar-denominated government bonds [5]