Berkshire Hathaway entered an agreement to acquire Occidental Petroleum’s OxyChem segment for $9.7 billion, the companies announced Thursday.
The transaction is expected to close in the fourth quarter of 2025.
OxyChem manufactures standardized chemicals on a large scale that are applied in water treatment, pharmaceuticals, healthcare and commercial and residential developments, according to the press release. Chemicals it produces include chlorine, caustic soda, polyvinyl chloride and ethylene, according to an annual securities filing.
Another Occidental subsidiary will retain Oxychem’s legacy environmental liabilities, according to the press release. Additionally, Glenn Springs Holdings, another subsidiary of the oil and gas company, will continue to oversee existing remedial projects for the segment.
The OxyChem business adds to Warren Buffett-led conglomerate Berkshire Hathaway’s portfolio. The company operates various subsidiaries in diverse sectors including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing, according to the press release.
The transaction strengthens Occidental Petroleum’s financial position, President and CEO Vicki Hollub said in the press release. The deal will also enable Occidental to focus more on the oil and gas business that it has been for the last decade, opening opportunities to accelerate development and pursue acquisitions, according to a presentation.
“OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership,” Hollub said in a statement.
OxyChem owns and operates manufacturing plants at 21 domestic sites in Alabama, Georgia, Illinois, Kansas, Louisiana, Michigan, New Jersey, Ohio, Tennessee and Texas and at two international sites in Canada and Chile.
