Warren Buffett is going out with a bang—or at least, that’s what everyone’s assuming!
Berkshire Hathaway is acquiring Occidental Petroleum’s chemicals division, OxyChem, in a $9.7 billion all-cash deal. This marks Berkshire’s largest deal since the $12 billion Alleghany purchase in 2022. The deal is a clear win-win: Berkshire gains a steady, cash-generating business at attractive terms, while Occidental uses the proceeds to cut debt by $6.5 billion, strengthening its balance sheet in a challenging energy environment.
Buffett’s long-standing ties with Occidental add depth to this move—Berkshire owns around 28-30% of the oil company and previously helped finance Occidental’s Anadarko takeover in 2019. The acquisition solidifies Berkshire’s foothold in the energy and chemicals sector while allowing Occidental to focus on debt reduction and shareholder returns.
As Buffett prepares to hand over the reins to Greg Abel later this year, this deal embodies his signature value investing approach: predictable, durable businesses over flashier, high-growth bets. Whether or not it’s his final deal, Buffett’s OxyChem acquisition underscores a legacy grounded in patience, pragmatism, and long-term vision.