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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.

Berkshire Welcomes OxyChem Into the Fold

For Buffett’s conglomerate, this is not just another acquisition. Greg Abel, Berkshire Hathaway’s vice chairman of noninsurance operations, said OxyChem brings both a robust portfolio of assets and a skilled workforce.

“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire.”

Berkshire Hathaway, a multinational giant spanning insurance, freight rail, energy, retail, and manufacturing, has made a habit of swallowing up long-term performers that align with Buffett’s value-driven philosophy.

Legacy Liabilities and Legal Muscle

Under the terms, Occidental will retain OxyChem’s environmental liabilities through a subsidiary, with Glenn Springs Holdings continuing to oversee existing projects.

The deal was stitched together by top legal teams:

• Cravath Swaine & Moore LLP guided Occidental, led by mergers and acquisitions partners Daniel Cerqueira and George Schoen, alongside specialists in tax, environment, executive compensation, IP, and antitrust.

• Kirkland & Ellis LLP counseled Berkshire, fielding a team across corporate, tax, IP, benefits, employment, and energy regulation, including partners Cy Jones, Andy Calder, Jacob Volz, and others.

A Buffett-Scale Bet

For Buffett, who has famously favored long-term investments in industries that “never go out of style,” OxyChem represents both security and scale. With this acquisition, Berkshire Hathaway doesn’t just diversify — it cements its grip on industries tied directly to everyday life.

The deal is expected to close following regulatory approval, ushering in a new chapter for both Occidental and Berkshire Hathaway’s empire.