OXY(US:OXY) Huan Qiu Wang Zi Xun·2025-10-01 03:23Group 1 - Berkshire Hathaway, led by Warren Buffett, is in advanced talks to acquire Occidental Petroleum's chemical subsidiary OxyChem for approximately $10 billion, marking the largest acquisition since the $13.7 billion purchase of Alleghany Corp. in 2022 [1] - Occidental Petroleum's decision to sell OxyChem is driven by the need to alleviate its debt burden, which has reached $23.34 billion as of June 2025, following aggressive expansions through acquisitions [3] - OxyChem generated $2.42 billion in revenue in the first two quarters of 2025, focusing on chemical products for healthcare, food safety, and construction, but its capital-intensive nature conflicts with Occidental's strategic focus on energy [3] Group 2 - The acquisition aligns with Buffett's investment philosophy of "buying quality assets at low prices" and continues Berkshire's strategy in the chemical sector, following a previous $10 billion acquisition of Lubrizol in 2011 [4] - OxyChem's applications complement Berkshire's other businesses, and the acquisition could deepen the collaboration between Berkshire and Occidental, which currently holds 28.2% of Occidental's shares valued at over $11 billion [4] - The deal signifies a shift in Berkshire's strategy from a conservative approach to a more aggressive stance in energy and industrial sectors, as indicated by recent investments and acquisitions [4] Group 3 - Following the announcement, Occidental's stock price fell by 1.81% to $47.25 but showed a slight recovery in after-hours trading, reflecting cautious optimism in the market regarding the deal [5] - Berkshire Hathaway's cash reserves are at a historical peak of $344 billion, providing ample resources for the $10 billion transaction [5] - Buffett's recent activities, including a $1.6 billion investment in UnitedHealth Group and increased stakes in Japanese trading companies, are interpreted as a final push before his expected retirement as CEO by the end of 2025 [5]