Berkshire Hathaway reportedly Weighs $10 Billionโฃ 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 โto a Wall Streetโ Journalโ 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 โขpetrochemicals.
Thisโ move arrives as demandโ for petrochemicals-essential components in plastics, detergents, โคand 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 โcontinued growth as global manufacturing โฃand infrastructure projects progress. The deal impacts investors inโค 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 โOxyChem would represent a direct investment in the productionโฃ of key chemical compounds, rather than solely relying on Occidental’s oil and gas exploration โฃand 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 โคHathaway โฃhas not yet publicly commented on the potential โtransaction. Shares of bothโค Berkshire Hathaway (Brk.a and Brk.b) โขand Occidental Petroleum are being closely watched โขby investors as โขtheyโข await further developments.