Berkshire Hathaway Buys Occidental's Petrochemicals for $9.7B
Berkshire Hathaway, led by Warren Buffett, is acquiring Occidental Petroleum's petrochemical division for $9.7 billion. This deal is the largest made by Berkshire Hathaway since 2022. Occidental Petroleum plans to use $6.5 billion of the proceeds to reduce its debt and resume share buybacks.
Occidental Petroleum's stock has risen around 1% following the announcement of the deal. Berkshire Hathaway, despite being a major shareholder since 2019, has not made a full takeover attempt of Occidental Petroleum. This could be due to strategic or financial reasons, as no definitive public announcement or move towards acquisition has been reported. Meanwhile, Berkshire Hathaway's shares are down 0.3% despite gaining around 10% since the beginning of the year.
The acquisition of Occidental Petroleum's petrochemical division by Berkshire Hathaway for $9.7 billion is set to reduce Occidental's debt and potentially boost its shares through resumed buybacks. Despite being a significant investor, Berkshire Hathaway has not pursued full ownership of Occidental Petroleum.
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