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Berkshire Hathaway to buy Occidental's OxyChem for $9.7B; Buffett's biggest deal in 3 yrs
Posted on 10/2/25 at 8:08 am
Posted on 10/2/25 at 8:08 am
quote:
Warren Buffett's Berkshire Hathaway announced Thursday it reached a deal to buy Occidental Petroleum's petrochemical unit, OxyChem, for $9.7 billion in cash.
The deal marks Berkshire's largest since 2022, when it paid $11.6 billion for insurer Alleghany.
quote:
OxyChem manufactures water treatment, healthcare and other commercial chemicals. Occidental said it will use $6.5 billion of the proceeds to pay down debt.
quote:
The last time Berkshire did a deal in the chemical space was in 2011, buying Lubrizol for a similar $10 billion figure.
"We look forward to welcoming OxyChem as an operating subsidiary within Berkshire," said Greg Abel, Vice Chairman of Non-Insurance Operations at Berkshire, in a press release.
Abel, who will replace Buffett as CEO of Berkshire in 2026, added that Hollub is showing her "commitment to Occidental's long-term financial stability, as demonstrated by their plan to use proceeds to reinforce the company's balance sheet."
LINK
Louisiana related, as OxyChem operates plants in Geismer, Convent, Taft and Luling. 2016 article in The Advocate cited about 1000 jobs when factoring employees and contractors.
Several plants south of Houston as well.
This post was edited on 10/2/25 at 9:05 am
9
Posted on 10/2/25 at 8:10 am to ragincajun03
Yuuuuuge for Oxy. Should stabilize them for the long term
Chemical industry is in chaos at the moment. Tariffs and Chinese dumping low cost high volumes have decimated prices.
Chemical industry is in chaos at the moment. Tariffs and Chinese dumping low cost high volumes have decimated prices.
This post was edited on 10/2/25 at 8:11 am
Posted on 10/2/25 at 8:10 am to ragincajun03
quote:
Occidental said it will use $6.5 billion of the proceeds to pay down debt.
How does an entity get in a 6.5 billion hole?
Posted on 10/2/25 at 8:11 am to HeadSlash
Starbucks and uber eats
Posted on 10/2/25 at 8:15 am to HeadSlash
quote:
How does an entity get in a 6.5 billion hole?
Happens quite a bit actually. In some spheres, it’s a hedge to avoid getting bought by someone else.
Diamondback Energy, very successful Permian shale player, has about 15B in debt since their purchase of Endeavor.
Posted on 10/2/25 at 8:16 am to HeadSlash
Bad oil exploration investments
Posted on 10/2/25 at 8:19 am to HeadSlash
quote:
How does an entity get in a 6.5 billion hole?
The debt was much, much bigger than that.
The current debt is over $20 billion.
Posted on 10/2/25 at 8:21 am to HeadSlash
quote:Employee appreciation pizza parties
How does an entity get in a 6.5 billion hole?
Posted on 10/2/25 at 8:30 am to HeadSlash
quote:
How does an entity get in a 6.5 billion hole?
Debt at this scale isn't like credit card debt. It's very common for big companies to have billions in debt and sometimes is looked at positively depending on ratios, rate, etc.
Apple has over $100 billion in debt.
ETA:
In can certainly be bad as well, depending on those same variables.
This post was edited on 10/2/25 at 8:31 am
Posted on 10/2/25 at 8:37 am to ragincajun03
Vicky getting paid
Posted on 10/2/25 at 9:02 am to ragincajun03
quote:
for $9.7 billion, in Buffett's biggest deal
quote:
Berkshire's largest since 2022
Posted on 10/2/25 at 9:04 am to CocomoLSU
Sorry. Title I copied and pasted got cut off.
Posted on 10/2/25 at 9:05 am to ragincajun03
I figured. 
Posted on 10/2/25 at 9:08 am to ragincajun03
quote:
for $9.7B; Buffett's biggest deal in 3 yrs
Guess i need to eat brkfast. I read that as a big buffet for only $9.78
Posted on 10/2/25 at 10:00 am to ragincajun03
Aaaand the stock takes a dive
Posted on 10/2/25 at 10:01 am to ragincajun03
Heard about this yesterday. My buddy contracts to Oxy, hes worried about his job.
Posted on 10/2/25 at 10:07 am to ragincajun03
I have a friend who is pretty high up at one of the plants. He said they aren't too worried about any organizational shakeups, but they are concerned about changes to their benefits.
Posted on 10/2/25 at 10:35 am to facher08
quote:
He said they aren't too worried about any organizational shakeups, but they are concerned about changes to their benefits.
It’s not like they’re being bought by another company that makes the same products where they’re a bunch of “synergies” and duplication, so for the time being, shouldn’t be any employment shakeups, like when a Chevron buys a Hess and can cut a bunch of duplicate positions and management. Heck, even the contractors and vendors are probably mostly safe.
But the benefits of 401k, insurance, etc…yeah, who knows.
Also wonder how long they’ll keep all the plants open, as recently articles published talk about petrochemical product demand from China not being as strong since China’s been producing more and more of that stuff within their own country. So…do they keep all the plants in Louisiana and Houston are running long term, or does Berkshire eventually close some of those?
This post was edited on 10/2/25 at 10:40 am
Posted on 10/2/25 at 11:21 am to HeadSlash
Oxy owed north of $50b after they bought Anadarko and Crown Rock.
They have cut that in half by divestiture, application of cash on hand, and accounting mechanisms. If they allocate $6.5b from this $10b from Buffett they should owe around $15-17.5b when the dust settles.
They have cut that in half by divestiture, application of cash on hand, and accounting mechanisms. If they allocate $6.5b from this $10b from Buffett they should owe around $15-17.5b when the dust settles.
Posted on 10/2/25 at 12:00 pm to ragincajun03
Somebody needs to get Buffett some gold-plated truck nuts since he wants to be a plant baw now
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