Berkshire Hathaway nears $10 billion deal for OxyChem

Berkshire Hathaway is in advanced talks to acquire Occidental Petroleum’s OxyChem division for about $10 billion, in what would be its largest deal since 2022 and Occidental’s biggest divestment to date.

The sale would carve out one of the world’s largest standalone petrochemical companies. OxyChem generated nearly $5 billion in revenue in the 12 months to June 2025 and has been a key cash generator for Occidental.

Occidental, burdened with $24 billion in debt from its Anadarko and CrownRock acquisitions, has been accelerating disposals to shore up its balance sheet. It has raised $4 billion from asset sales this year, trimming debt by $7.5 billion. 

Berkshire Hathaway, Occidental’s largest shareholder with a 26.9% stake, does not plan to use Occidental stock to fund the purchase. The acquisition would be Berkshire’s biggest since its $11.6 billion takeover of an insurance giant, Alleghany, in 2022.

Occidental continues to invest in new energy projects alongside its oil and gas operations. This month, its subsidiary 1PointFive formed a joint venture with Enbridge to develop a carbon storage hub in Louisiana.

Analysts said the OxyChem sale strengthens Occidental’s position to pursue upstream growth. However, if the deal does go through, it would expand the group’s industrial footprint at a time when petrochemical producers face squeezed margins from a global supply glut, new capacity in the US and Middle East, and rising domestic production in China.

Written: Farid Muzaffar