OXY(US:OXY) Sou Hu Cai Jing·2025-10-02 13:32Core Viewpoint - Warren Buffett's Berkshire Hathaway has announced a significant acquisition of Occidental Petroleum's chemical business, OxyChem, for $9.7 billion, marking its largest deal in three years and indicating a potential shift back to aggressive acquisitions after a period of divestment [1][4]. Group 1: Acquisition Details - The acquisition is valued at $9.7 billion and is the largest since Berkshire's $11.6 billion purchase of Alleghany in 2022 [1]. - Berkshire Hathaway currently holds a 28.2% stake in Occidental Petroleum as of June 30 [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: Management Insights - Occidental's CEO, Vicki Hollub, stated that the deal will help accelerate debt reduction and enhance shareholder confidence, potentially attracting new investors [4]. - Berkshire's Vice Chairman, Greg Abel, expressed optimism about OxyChem becoming an operational subsidiary of Berkshire and highlighted the commitment to long-term financial stability [5]. Group 3: Historical Context - This acquisition marks Berkshire's return to the chemical sector since its $10 billion acquisition of Lubrizol in 2011 [5]. - Buffett's initial involvement with Occidental began in 2019 when he invested $10 billion to support its acquisition of Anadarko Petroleum [6]. - In August, Occidental revised its full-year pre-tax earnings guidance down by approximately 15% to a range of $800 million to $900 million due to oversupply in key product markets [6].