TLDR
- Berkshire Hathaway is negotiating a $10B purchase of Occidental’s OxyChem unit.
- The deal would be Berkshire’s largest since its 2022 Alleghany acquisition.
- Occidental seeks to reduce debt after major acquisitions, including CrownRock.
- Buffett, set to step down as CEO in 2025, still drives Berkshire’s strategy.
- BRK-B stock closed at $502.74 on September 30, up 0.70%.
Berkshire Hathaway Inc. ($BRK-B) stock closed at $502.74 on September 30, 2025, up 0.70% for the day. Pre-market trading saw shares at $501.20, down 0.31%.
Berkshire Hathaway Inc. (BRK-B)
The stock movement comes as Warren Buffett’s conglomerate is reportedly negotiating to buy Occidental Petroleum’s petrochemical unit, OxyChem, in a deal worth around $10 billion.
The Wall Street Journal reported that the deal could be finalized within days, citing people familiar with the talks. If completed, it would represent Berkshire’s largest acquisition since 2022, when it purchased insurance company Alleghany for $11.6 billion.
Exclusive: Warren Buffett’s Berkshire Hathaway is in talks to buy Occidental Petroleum’s chemical unit for $10 billion, in what would be its largest deal since 2022 https://t.co/bjt30Pxkje
— The Wall Street Journal (@WSJ) September 30, 2025
Strategic Fit with Berkshire
Buffett’s firm already holds a 28.2% stake in Occidental, worth more than $11 billion, making it the largest shareholder. While speculation once swirled around Berkshire fully acquiring Occidental, Buffett dismissed such plans. Instead, the OxyChem deal would expand Berkshire’s industrial portfolio.
OxyChem produces key materials like chlorine, PVC resin, and vinyl products, which are vital in water treatment, medical supplies, and construction. The unit generated about $5 billion in revenue over the past year and is expected to deliver $800–$900 million in pretax income this year.
Occidental’s Debt Strategy
Occidental has been selling non-core assets to reduce debt, which ballooned after its $55 billion purchase of Anadarko in 2019. The company has since cut debt from nearly $49 billion to around $24 billion. In 2023, it acquired CrownRock for $12 billion, further reshaping its balance sheet.
Reports suggest that divesting OxyChem aligns with Occidental’s broader plan to streamline operations and strengthen its financial position. The Financial Times previously noted that the company had been evaluating potential asset sales.
Buffett’s Transition and Cash Position
The deal comes as Buffett, 95, prepares to step down as CEO at the end of 2025, though he will remain as chairman. His successor, Greg Abel, brings strong expertise in the energy sector from his leadership at Berkshire Hathaway Energy.
Berkshire is well-positioned to fund the transaction, sitting on a record cash pile of $344 billion at the end of June. This financial strength allows it to pursue major acquisitions while also investing in companies like UnitedHealth Group.
Performance Snapshot
As of September 30, 2025, Berkshire Hathaway has returned 10.91% YTD, compared with the S&P 500’s 13.72%. Over the past five years, BRK-B gained 136.09%, outpacing the benchmark’s 98.88%.
