Overview
- Berkshire agreed to acquire Occidental Petroleum’s petrochemical unit, marking its largest deal since purchasing Alleghany in 2022 and echoing its 2011 Lubrizol buy.
- Berkshire already owns about 28.2% of Occidental and has indicated it is not seeking control of the oil and gas company.
- Occidental CEO Vicki Hollub said $6.5 billion of proceeds will reduce debt and allow the company to resume repurchasing shares.
- Occidental shares fell roughly 6% on Thursday after reports of the transaction and capital allocation plans.
- The move redeploys part of Berkshire’s record cash reserves, with Vice Chair Greg Abel highlighting the unit’s stable operations and Occidental’s balance-sheet strengthening.