OXY(US:OXY) Feng Huang Wang·2025-10-02 22:59Core Viewpoint - Berkshire Hathaway has reached a final agreement to acquire Occidental Petroleum's chemical business, OxyChem, for $9.7 billion in cash, marking a significant move in the chemical sector for Berkshire [1][3]. Group 1: Transaction Details - The acquisition price for OxyChem is set at $9.7 billion, which is slightly lower than the previously reported estimate of around $10 billion [1][3]. - Occidental Petroleum plans to use $6.5 billion of the proceeds from the sale to reduce its debt, aiming to keep its principal debt below $15 billion by December 2023 [3]. Group 2: Strategic Implications - This transaction represents Occidental Petroleum's largest asset sale in its history, part of a broader strategy to divest assets and reduce debt following several large acquisitions [3]. - Berkshire Hathaway's acquisition of OxyChem is expected to complement its existing businesses, aligning with Warren Buffett's investment philosophy of acquiring quality assets at lower prices [3]. Group 3: Market Reactions and Analyst Opinions - Analysts have expressed concerns that the sale of OxyChem may negatively impact Occidental Petroleum's free cash flow growth in the coming years, as the division was anticipated to contribute significantly to the company's expansion [5]. - Some analysts believe the sale price is on the lower side, with one previously estimating OxyChem's value at around $12 billion [5].