OXY(US:OXY) Feng Huang Wang·2025-10-02 00:55Core Viewpoint - Warren Buffett's Berkshire Hathaway is in talks to acquire Occidental Petroleum's chemical business, OxyChem, for approximately $10 billion, which would be its largest acquisition since 2022 [1] Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and represents a significant move for Berkshire Hathaway, which is already Occidental Petroleum's largest shareholder with a 28% stake valued at nearly $13 billion [1] - OxyChem is projected to contribute $4.92 billion, or 18% of Occidental's total sales of $26.73 billion in 2024 [1] - This acquisition would mark Berkshire's second major investment in the chemical sector, following its nearly $10 billion purchase of Lubrizol Corp in 2011 [1] Group 2: Historical Context - Berkshire Hathaway previously acquired a portion of Occidental's preferred shares during the acquisition of Anadarko Petroleum in 2019 and has been increasing its stake in Occidental since 2022 [2] - Buffett has expressed confidence in Occidental's management, particularly CEO Vicki Hollub, which influenced his decision to increase holdings in the company [2] Group 3: Financial Position - As of June 30, Berkshire Hathaway had cash and cash equivalents totaling $344 billion, close to record highs, indicating a strong liquidity position for potential investments [3] - Buffett has indicated a willingness to deploy significant capital for the right investment opportunities, having nearly pursued a $10 billion investment earlier this year [3] - Occidental's stock has seen a decline of over 4% this year, attributed to falling oil prices and concerns regarding the company's debt burden [3]