Berkshire Hathaway in Talks to Buy Occidental’s Chemicals Business

Core Viewpoint - Berkshire Hathaway is in negotiations to acquire Occidental Petroleum's petrochemicals business, potentially valued at $10 billion, marking a significant move in the oil and petrochemical sectors [1][2]. Group 1: Acquisition Details - The deal could close within a few days and would represent Berkshire Hathaway's largest acquisition since 2022, when it acquired Alleghany for $11.6 billion [2]. - Berkshire Hathaway is already the largest shareholder in Occidental Petroleum and has been increasing its stake over the years, leading to speculation about a potential takeover [2]. Group 2: Occidental Petroleum's Business - Occidental's petrochemicals division, OxyChem, specializes in chemicals for battery recycling, water chlorination, and paper production, and generates approximately $5 billion in revenue annually [3]. - If the acquisition is finalized, OxyChem would rank among the largest standalone petrochemical producers globally [3]. Group 3: Financial Context - Occidental has been divesting assets to reduce its debt, which currently stands at about $24 billion, down from $48.75 billion in September 2019, following its $55 billion acquisition of Anadarko [4]. - The company faced a debt increase in 2023 after acquiring CrownRock for $12 billion [4]. Group 4: Industry Position - Earlier this year, Occidental was recognized as one of the top 10 shale operators, producing 1.22 million barrels of oil equivalent daily, ranking third behind Exxon and Expand Energy [5].