Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is in talks to acquire Occidental Petroleum's chemical business, OxyChem, for approximately $10 billion, which would be its largest acquisition since 2022 [1][2]. Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and would mark Berkshire's largest deal since acquiring Alleghany for $11.6 billion in 2022 [2][6]. - Occidental Petroleum, headquartered in Houston, has a market capitalization of about $46 billion and is primarily known for its oil and gas operations. Berkshire is already the largest shareholder, holding over $11 billion in Occidental stock, representing a 28.2% stake [2][7]. - OxyChem, the chemical division of Occidental, generated nearly $5 billion in sales over the past 12 months, producing various chemical products used in water chlorination, battery recycling, and papermaking [2]. Group 2: Historical Context - This would be Buffett's second significant investment in the chemical sector, following the nearly $10 billion acquisition of specialty chemicals producer Lubrizol in 2011 [5]. - Buffett began investing in Occidental Petroleum in 2019, initially purchasing $10 billion in preferred stock to assist CEO Vicki Hollub in acquiring Anadarko Petroleum [7]. Group 3: Financial Position - Occidental has been actively selling non-core assets to reduce its debt, having repaid $7.5 billion in debt as of August [9]. - Berkshire Hathaway holds a record $344 billion in cash and U.S. Treasury securities, indicating a strong liquidity position and a preference for acquisitions over holding cash [10][11].

Market Overview - US stock market showed resilience amid government shutdown pressures, with the Dow Jones reaching a new high and the S&P 500 recording its largest September gain in 15 years [2] - Tesla's stock surged by 33% in September, while Google's stock rose by 38%, marking its largest quarterly increase since 2005 [2] - CoreWeave's stock increased by nearly 12% following a significant deal with Meta [5] - Pfizer's stock rose nearly 7% after a price reduction agreement was announced [4] - The European stock index recorded its best September performance in six years [2] Economic Indicators - China's official manufacturing PMI rose to 49.8 in September, marking the second consecutive month of improvement [11] - The RatingDog manufacturing PMI in China increased to 51.2, with new orders growing at the fastest rate since February [21] - The top 100 real estate companies in China achieved sales of 252.78 billion yuan in September, a year-on-year increase of 0.4% [12] Corporate Developments - OpenAI launched Sora 2.0, a video generation model, and reported a revenue of $4.3 billion in the first half of the year, despite a cash burn of $2.5 billion and a net loss of $13.5 billion [14] - CoreWeave signed a $14.2 billion computing supply agreement with Meta, highlighting the high costs associated with developing advanced AI models [16] - Berkshire Hathaway is reportedly negotiating a $10 billion acquisition of Occidental Petroleum's chemical division, which would be its largest deal since 2022 [16] Industry Trends - The AI infrastructure investment is accelerating, with Citigroup raising its AI capital expenditure forecast to $490 billion by 2026 [23] - The demand for new housing in China is expected to stabilize, with a significant increase in supply anticipated [12] - The Japanese government is expected to reduce its bond purchases, leading to rising yields in the bond market [22]

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is in talks to acquire Occidental Petroleum's chemical division OxyChem for approximately $10 billion, marking its largest acquisition since 2022 and a significant investment in the chemical industry [1][3][4]. Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and represents a strategic move for Berkshire, which already holds a 28.2% stake in Occidental Petroleum valued at over $11 billion [4]. - Occidental Petroleum, headquartered in Houston, has a market capitalization of around $46 billion and is primarily known for its oil and gas operations [4]. - OxyChem, the chemical division, generated nearly $5 billion in sales over the past 12 months, producing various chemical products used in water chlorination, battery recycling, and paper manufacturing [4]. Group 2: Historical Context - This would be Buffett's second major investment in the chemical sector, following the nearly $10 billion acquisition of specialty chemicals producer Lubrizol in 2011 [7]. - Berkshire's last significant acquisition was in 2022 when it agreed to purchase insurance company Alleghany for $11.6 billion [8]. Group 3: Investment Background - Buffett began investing in Occidental Petroleum in 2019, initially purchasing $10 billion in preferred stock to assist the company in acquiring Anadarko Petroleum [9]. - Since then, Occidental has faced challenges, including significant debt and criticism from activist investors, leading to asset sales to reduce debt by $7.5 billion [10]. Group 4: Financial Position - Berkshire Hathaway currently holds a record cash and U.S. Treasury bond position of $344 billion, indicating a strong financial capacity for acquisitions [11]. - Buffett has expressed a preference for acquiring businesses over holding cash, emphasizing the value of ownership in good companies [12].

Core Viewpoint - Berkshire Hathaway is in negotiations to acquire Occidental Petroleum's petrochemical business for approximately $10 billion, which would be its largest acquisition since 2022 [1] Group 1: Acquisition Details - The deal could be finalized in the coming days, indicating a swift progression in negotiations [1] - Berkshire Hathaway has been increasing its stake in Occidental Petroleum, showing a strong interest in the company's strategic adjustments and asset disposals [1] Group 2: Occidental Petroleum's Financial Moves - Occidental Petroleum has sold nearly $4 billion in assets since last year to help pay down debt incurred from a $10.8 billion acquisition of CrownRock LP in 2023 [1] - The divestiture of the petrochemical business is viewed as a significant step in Occidental's strategy to streamline operations [1] Group 3: Implications of the Deal - If the acquisition is successful, it will strengthen Berkshire Hathaway's position in the energy sector [1] - The transaction is expected to improve Occidental Petroleum's balance sheet, providing more room for future growth [1]

Core Viewpoint - Berkshire Hathaway is in negotiations to acquire Occidental Petroleum's chemical unit, OxyChem, for approximately $10 billion, which would be its largest acquisition since 2022 [1][2]. Group 1: Company Overview - Occidental Petroleum, based in Houston, has a market capitalization of about $46 billion and is primarily known for its oil and gas operations [2]. - OxyChem generates nearly $5 billion in revenue for the year ending June, producing products used in disinfecting water, battery recycling, and paper production [2]. Group 2: Investment Context - If the acquisition is finalized, it would represent Berkshire's second significant investment in the chemicals sector, following the purchase of Lubrizol in 2011 for nearly $10 billion [2]. - Berkshire Hathaway is already Occidental's largest shareholder, having increased its stake to around 28% after providing $10 billion for preferred shares to help finance Occidental's $38 billion acquisition of Anadarko Petroleum [5]. Group 3: Financial Background - Berkshire's last major acquisition was the $11.6 billion purchase of Alleghany in 2022 [4]. - Occidental has been actively selling assets to reduce its debt, having repaid $7.5 billion by August, while Berkshire holds record cash reserves of approximately $344 billion as of June [5].

Core Insights - Berkshire Hathaway is nearing a deal to acquire Occidental Petroleum's petrochemical unit OxyChem for approximately $10 billion, marking a significant transaction for the company [1][2] - This potential acquisition could be Berkshire's largest since the $11.6 billion purchase of insurer Alleghany in 2022, highlighting the company's ongoing investment strategy [2] - Berkshire Hathaway currently holds a record cash reserve of $344 billion, providing ample liquidity for such acquisitions [2] Company Developments - Warren Buffett, aged 95, will step down as CEO of Berkshire Hathaway at the end of 2025 but will continue as chairman, with Greg Abel, known for his expertise in the energy sector, set to succeed him [3] - Berkshire Hathaway owns over $11 billion worth of Occidental stock, representing a 28.2% stake, indicating a strong existing relationship with the company [4] - Buffett previously supported Occidental's acquisition of Anadarko Petroleum in 2019 with a $10 billion investment, receiving preferred shares and warrants in return [4] Market Reactions - Despite the news of the potential acquisition, shares of Occidental Petroleum fell by 1.8% on the day the report was released, reflecting market skepticism or profit-taking [3] - Occidental has been actively investing in a carbon capture business and offers a 2% dividend yield, which may appeal to investors looking for sustainable energy solutions [5] Investment Strategy - Buffett began purchasing Occidental common stock in early 2022, capitalizing on market volatility during the COVID-19 pandemic to acquire shares at a discount [5] - The ongoing investment in Occidental and the potential acquisition of OxyChem align with Berkshire's strategy of investing in energy and related sectors [5]

Berkshire Hathaway is in talks to buy Occidental Petroleum's petrochemical unit for about $10 billion, the Wall Street Journal reported on Tuesday citing people familiar with the matter. ...

Warren Buffett’s Berkshire Hathaway is in talks to buy Occidental Petroleum’s petrochemical business for around $10 billion, according to The Wall Street Journal https://t.co/u6celyPPZQ ...

Core Viewpoint - Berkshire Hathaway is nearing a $10 billion agreement to acquire OxyChem, a subsidiary of Occidental Petroleum [1] Group 1 - The acquisition reflects Berkshire Hathaway's continued interest in the chemicals sector, particularly in companies with strong market positions [1] - OxyChem is known for its production of various chemical products, which are essential for multiple industries [1] - This potential deal could enhance Berkshire Hathaway's portfolio and provide significant revenue opportunities [1]

Exclusive: Warren Buffett’s Berkshire Hathaway is in talks to buy Occidental Petroleum’s chemical unit for $10 billion, in what would be its largest deal since 2022 https://t.co/bjt30Pxkje ...