Berkshire Hathaway Nears $10B Occidental Chemicals Deal in Buffett’s Latest Strategic Move

Warren Buffett's Berkshire Hathaway is finalizing negotiations to acquire Occidental Petroleum's OxyChem unit for approximately $10 billion. The transaction WOULD mark Berkshire's largest deal since its $11.6 billion purchase of Alleghany in 2022, reinforcing Buffett's strategy of acquiring essential industrial assets.

Berkshire already holds a 28.2% stake in Occidental worth over $11 billion, making this chemical division acquisition a logical vertical integration play. The deal comes as Occidental seeks to reduce debt following its CrownRock acquisition, while Buffett prepares for his 2025 CEO transition.

BRK-B shares showed muted reaction, closing at $502.74 (up 0.70%) on September 30 with minimal pre-market movement. The chemical unit's stable cash flows align perfectly with Berkshire's preference for recession-resistant businesses.