Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, is in talks to acquire Occidental Petroleum's chemical division OxyChem for approximately $10 billion, marking its largest acquisition since 2022 and a significant investment in the chemical industry [1][3][4]. Group 1: Acquisition Details - The potential acquisition of OxyChem could be finalized within days and represents a strategic move for Berkshire, which already holds a 28.2% stake in Occidental Petroleum valued at over $11 billion [4]. - Occidental Petroleum, headquartered in Houston, has a market capitalization of around $46 billion and is primarily known for its oil and gas operations [4]. - OxyChem, the chemical division, generated nearly $5 billion in sales over the past 12 months, producing various chemical products used in water chlorination, battery recycling, and paper manufacturing [4]. Group 2: Historical Context - This would be Buffett's second major investment in the chemical sector, following the nearly $10 billion acquisition of specialty chemicals producer Lubrizol in 2011 [7]. - Berkshire's last significant acquisition was in 2022 when it agreed to purchase insurance company Alleghany for $11.6 billion [8]. Group 3: Investment Background - Buffett began investing in Occidental Petroleum in 2019, initially purchasing $10 billion in preferred stock to assist the company in acquiring Anadarko Petroleum [9]. - Since then, Occidental has faced challenges, including significant debt and criticism from activist investors, leading to asset sales to reduce debt by $7.5 billion [10]. Group 4: Financial Position - Berkshire Hathaway currently holds a record cash and U.S. Treasury bond position of $344 billion, indicating a strong financial capacity for acquisitions [11]. - Buffett has expressed a preference for acquiring businesses over holding cash, emphasizing the value of ownership in good companies [12].