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CWEB Business News Buffett’s Berkshire Makes Bold $9.7 Billion Bet on Petrochemicals with OxyChem Acquisition
['Cweb Staff']
CWEB
In a strategic move that deepens its ties to the energy sector, Warren Buffett’s Berkshire Hathaway has struck a deal to acquire the OxyChem petrochemical division from Occidental Petroleum for a substantial $9.7 billion in cash.
For Occidental Petroleum, the sale is a pivotal step in its aggressive debt-reduction strategy.
The company has been actively divesting assets, particularly in the Permian Basin, to strengthen its balance sheet following its major CrownRock acquisition.
Proceeds from the OxyChem sale, a significant portion of which will be used to retire debt, are expected to accelerate this financial overhaul.
The unit is seen as a natural fit within Berkshire’s extensive industrial portfolio, complementing its existing holdings like Lubrizol.