Berkshire Hathaway to Acquire Oxychem for $9.7 Billion in Major Deal Signaling Post-Buffett Era
Houston, TX – Berkshire Hathaway has agreed to purchase Oxychem, the petrochemical division of Western Petroleum, for $9.7 billion, marking the investment platform’s most significant deal in three years. The announcement, made by Berkshire Hathaway, comes as Warren Buffett, the company’s long-time CEO, transitions leadership to Greg Abel, designated as his successor in May.
Western Petroleum,headquartered in Houston,boasts a market capitalization of approximately $46 billion and already counts Berkshire Hathaway as a major shareholder. Oxychem specializes in the production and sale of chemicals utilized in diverse applications, including water chlorination, battery recycling, and paper manufacturing, generating nearly $5 billion in sales over the preceding 12 months ending in June.
This acquisition represents berkshire Hathaway’s most substantial investment in the chemical sector as 2011, when it acquired Lubrizol, a specialty chemistry manufacturer, for nearly $10 billion, including debt. Western Petroleum itself was founded in 1920 in Los Angeles, undergoing a significant change under Armand Hammer, who joined the company in 1957 and secured contracts in Libya, the Middle East, and the Soviet Union, elevating it to an international scale.
The deal underscores a shift in Berkshire Hathaway’s strategic direction as it navigates a future without the direct involvement of Warren Buffett,often referred to as the “Oracle of Omaha.”
