Billionaire value investor Warren Buffett’s Omaha-based investment giant, Berkshire Hathaway, announced on Thursday, 2 October 2025, its plans to acquire Occidental Petroleum’s chemical business, OxyChem, according to an official release. The shares of the energy firm jumped over 2% during the pre-market trading session on Thursday.
Berkshire Hathaway plans to acquire Occidental’s chemical business in an all-cash transaction valued at $9.7 billion.
“Berkshire Hathaway (NYSE: BRK) and Occidental (NYSE: OXY) today announced a definitive agreement for Berkshire Hathaway to acquire Occidental’s chemical business, OxyChem, in an all-cash transaction for $9.7 billion, subject to customary purchase price adjustments,” according to the official release.
The global manufacturer of commodity chemicals aims to strengthen its financial position and capitalise on a ‘20+ years of low-cost resource runway’ to deliver long-term value for the investors.
“Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team,” said Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire in the statement.
What will the money be used for?
Occidental aims to use the $9.7 billion raised from the deal with Berkshire to reduce $6.5 billion in debts and achieve the target of principal debt below $15 billion, which was announced in December 2023.
The company also stated that one of its subsidiaries will assume OxyChem’s legacy environmental liabilities, and Glenn Springs Holdings Inc. will continue to manage existing remedial projects for that subsidiary, as indicated in the official statement.
The deal is expected to be closed in the fourth quarter of 2025, subject to the necessary regulatory approvals and closing conditions.
Occidental Petroleum Share Price Trend
Occidental Petroleum shares jumped 2.68% to $49 during the pre-market session on the New York Stock Exchange (NYSE), compared to $47.72 at the previous market close.
However, after the US stock market opened, the shares of the energy company dropped more than 4% to $45.72 as of 9:42 a.m. (EDT), compared to the previous Wall Street close, according to the data collected from MarketWatch.
Despite the shares of the energy company delivering stock market investors more than a 363% return on their investment over the last five years, the company’s shares are down over 14% in the last one-year period.
On a year-to-date (YTD) basis, the Occidental shares have lost 8.11% and are trading 4.70% lower in the last one-month period on Wall Street. The stock has dropped 3.19% over the last five stock market sessions.
The company’s market capitalisation (M-Cap) stood at $46.98 billion as of the stock market session on Thursday, 2 October 2025.
After the acquisition announcement, Berkshire Hathaway’s Class B shares also jumped 0.21% to $499.25 levels post the opening bell on Wall Street, compared to $498.20 at the previous market close.
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