{"id":21380,"date":"2025-10-02T18:15:03","date_gmt":"2025-10-02T18:15:03","guid":{"rendered":"https:\/\/finderica.com\/?p=21380"},"modified":"2025-10-02T18:15:03","modified_gmt":"2025-10-02T18:15:03","slug":"warren-buffett-berkshire-occidental-oxychem","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=21380","title":{"rendered":"Warren Buffett Berkshire Occidental Oxychem"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108206932\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108206932\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000390830\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Warren Buffett&#8217;s <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">Berkshire Hathaway<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> announced Thursday it reached a deal to buy <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-2\">Occidental Petroleum&#8217;s<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> petrochemical unit, OxyChem, for $9.7 billion in cash.<\/p>\n<p>The deal marks Berkshire&#8217;s largest since 2022, when it paid $11.6 billion for insurer Alleghany. It also comes at a time in which the conglomerate is sitting on $344 billion in cash, near a record for the company.<\/p>\n<p>Shares of Occidental fell more than 7% on Thursday following the announcement.<\/p>\n<p>Berkshire is already a major investor in Occidental, holding a 28.2% stake as of the end of June. Buffett \u2014 who is 95 and stepping down as CEO at the end of the year \u2014 has said he wouldn&#8217;t take complete control of the Houston-based\u00a0oil company.<\/p>\n<p>OxyChem manufactures water treatment, health care and other commercial chemicals. Occidental said it will use $6.5 billion of the proceeds to pay down debt.<\/p>\n<p>Occidental CEO Vicki Hollub said the debt reduction resulting from the deal will enable her company to restart buying back stock.<\/p>\n<p>&#8220;The problem has been getting our debt down faster, so this resolves the one outstanding issue that I think will now unlock our stock and allow shareholders to feel more comfortable, hopefully, to add to their positions and others to come in,&#8221; Hollub said Thursday on CNBC&#8217;s &#8220;Squawk Box.&#8221; &#8220;So now we&#8217;re going to be able to start our sharing purchase program again. &#8230; This is the last step that we needed in our major transformation that we started 10 years ago.&#8221;<\/p>\n<p>The last time Berkshire did a deal in the chemical space was in 2011, buying Lubrizol for a similar $10 billion figure.<\/p>\n<p>&#8220;We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,&#8221; said Greg Abel, vice chairman of non-insurance operations at Berkshire, in a press release.<\/p>\n<p>Abel, who will succeed Buffett as CEO of Berkshire in 2026, added that Hollub is showing her &#8220;commitment to Occidental&#8217;s long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company&#8217;s balance sheet.&#8221;<\/p>\n<p>Both companies expect the deal to close in the fourth quarter. The Wall Street Journal first reported on the transaction earlier this week.<\/p>\n<p>Buffett first got involved with Occidental in 2019 when he helped bankroll\u00a0<a href=\"https:\/\/link.cnbc.com\/click\/27000995.22114\/aHR0cHM6Ly93d3cuc2VjLmdvdi9BcmNoaXZlcy9lZGdhci9kYXRhLzEwNjc5ODMvMDAwMDg5OTI0MzIyMDEwNzk4LzAwMDA4OTkyNDMtMjItMDEwNzk4LWluZGV4Lmh0bT9fX3NvdXJjZT1uZXdzbGV0dGVyJTdDd2FycmVuYnVmZmV0dHdhdGNo\/5af261592ddf9c7ca6cc4799D21b5c5b8\" target=\"_blank\" rel=\"noopener\">Occidental&#8217;s purchase of Anadarko Petroleum<\/a>\u00a0with a $10 billion commitment. He received preferred shares and warrants to buy common stock in return.\u00a0<\/p>\n<p>Hollub said as Occidental grows its cash position, it will start redeeming Berkshire&#8217;s preferred stock in 2029. Occidental currently pays a 8% dividend on Berkshire&#8217;s preferreds.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/10\/02\/warren-buffett-berkshire-occidental-oxychem.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Warren Buffett&#8217;s Berkshire Hathaway announced Thursday it reached a deal to buy Occidental Petroleum&#8217;s petrochemical unit, OxyChem, for $9.7 billion in cash. The deal marks Berkshire&#8217;s largest since 2022, when it paid $11.6 billion for insurer Alleghany. It also comes at a time in which the conglomerate is sitting on $344 billion in cash, near<\/p>\n","protected":false},"author":1,"featured_media":21381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[1967,1971,8402,8403,2092],"class_list":{"0":"post-21380","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-berkshire","9":"tag-buffett","10":"tag-occidental","11":"tag-oxychem","12":"tag-warren"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/21380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21380"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/21380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/21381"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}