Buffett's Berkshire Is Making Its Biggest Acquisition in Years—What You Need to Know

Core Insights - Berkshire Hathaway has announced a $9.7 billion all-cash acquisition of Occidental Petroleum's petrochemical division, OxyChem, marking the largest acquisition since 2022 [2][5] - The deal is seen as a significant move by Warren Buffett before his retirement as CEO at the end of the year, and it reflects a strategic bet on the chemicals industry [4][5] - The transaction is expected to close in the fourth quarter of 2025, and it is anticipated to strengthen Occidental's financial position by allowing the company to reduce its debt levels [4][6] Company Strategy - Berkshire Hathaway has been focusing on increasing its cash reserves by divesting shares in companies like Apple and Bank of America, rather than pursuing large acquisitions in recent years [5][6] - The acquisition of OxyChem represents Berkshire's second major investment in the chemicals sector, following the purchase of Lubrizol in 2011 [5] Market Reaction - Following the announcement, Occidental's shares experienced a decline of approximately 7%, while Berkshire Hathaway's shares remained relatively stable [6]