Warren Buffett is back in dealmaking mode. Berkshire Hathaway has agreed to purchase Occidental Petroleum’s chemical division, OxyChem, in a $9.7 billion all-cash takeover that marks one of the largest energy-linked transactions of the year.
The deal, engineered with the legal muscle of Cravath Swaine & Moore LLP for Occidental and Kirkland & Ellis LLP for Berkshire, positions Buffett’s empire even deeper into the industrial backbone of America.
Occidental Aims to Cut Debt
Occidental Petroleum, which holds major energy assets across the U.S., the Middle East, and North Africa, said it plans to use $6.5 billion of the sale proceeds to slash debt.
OxyChem, the crown jewel being sold, produces essential chemicals used in water treatment, pharmaceuticals, healthcare, and construction — products Occidental described as “vital to quality of life.”
Occidental President and CEO Vicki Hollub said the move is strategic:
“This transaction strengthens our financial position and catalyzes a resource opportunity we’ve been building in oil and gas for the last decade.”
She praised OxyChem as a “safely operated, best-in-class” business whose employees will thrive under Berkshire Hathaway’s stewardship.
