Berkshire Hathaway reportedly Weighs $10 Billion Acquisition of Occidental’s Chemical Business
berkshire Hathaway, led by Warren Buffett, is considering a roughly $10 billion purchase of Occidental Petroleum’s chemical business, OxyChem, according to a Wall Street Journal report published late Tuesday. The potential deal, which could be finalized within days, signals a possible deepening of Berkshire’s investment in the energy sector and a renewed interest in petrochemicals.
This move arrives as demand for petrochemicals-essential components in plastics, detergents, and a vast array of industrial products-remains robust, despite broader economic uncertainties. an acquisition of OxyChem would considerably expand Berkshire’s existing stake in Occidental Petroleum, already a considerable holding, and further diversify its portfolio into a sector poised for continued growth as global manufacturing and infrastructure projects progress. The deal impacts investors in both Berkshire Hathaway and Occidental Petroleum, perhaps reshaping the competitive landscape of the petrochemical industry.
Berkshire Hathaway already holds a meaningful stake in Occidental Petroleum, having steadily increased its position sence 2019. The potential acquisition of OxyChem would represent a direct investment in the production of key chemical compounds, rather than solely relying on Occidental’s oil and gas exploration and production.
The Wall Street Journal’s reporting,citing sources familiar with the matter,indicates the deal is still under discussion and subject to final agreement. Berkshire Hathaway has not yet publicly commented on the potential transaction. Shares of both Berkshire Hathaway (Brk.a and Brk.b) and Occidental Petroleum are being closely watched by investors as they await further developments.