Berkshire acquires Western Petrochemical business for $9.7 billion

On October 2, Berkshire Hathaway, led by Warren Buffett, announced it would acquire OxyChem, the chemical subsidiary of Occidental Petroleum, for $9.7 billion (approximately RMB 69 billion) in cash. The transaction is expected to close in the fourth quarter.

Nearly all of OxyChem's production assets are located in North America, making it one of the region's largest producers of chlor-alkali products and polyvinyl chloride (PVC). In 2024, OxyChem reported earnings of $1.1 billion on sales of $4.9 billion.

Berkshire has invested in Occidental multiple times since 2019 and currently holds approximately 28% of its shares, making it the company's largest shareholder. This acquisition is seen as a move to help Occidental reduce its debt burden while simultaneously expanding Berkshire's footprint in the chemical sector.

Occidental stated it plans to use $6.5 billion of the proceeds from the sale to repay debt, aiming to bring its total debt below $15 billion. At the end of 2024, Occidental carried about $24 billion in debt and had announced an asset divestment program worth nearly $4 billion in the first half of 2025.

This marks Buffett's second major bet on the chemical industry. As early as 2011, Berkshire acquired specialty chemicals producer Lubrizol for $9.7 billion.