Berkshire Hathaway (BRK.A / BRK.B), the holding company run by legendary investor Warren Buffett, has reached a deal to buy Occidental Petroleum’s (OXY) petrochemical unit called OxyChem for $9.7 billion U.S. in cash.
The deal is Berkshire Hathaway’s biggest since 2022, when it paid $11.6 billion U.S. for insurance company Alleghany.
The acquisition, which comes as Berkshire sits on a record cash pile of $344 billion U.S., is likely to be the last sizable deal for Buffett, age 95, who is stepping down as CEO at year’s end.
Berkshire Hathaway is a major shareholder in Occidental Petroleum with a 28% stake. Buffett has said he has no plans to take full control of the Texas-based oil major.
Buffett began buying Occidental Petroleum stock in 2022, taking advantage of market volatility to grab shares on the cheap.
OxyChem manufactures water treatment, healthcare, and other commercial chemicals.
“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,” said Greg Abel, Vice Chairman of Berkshire, in a news release.
Abel will succeed Buffett as Berkshire Hathaway’s CEO.
Berkshire’s more affordable class B stock has risen 10% this year to trade at $498.20 U.S. per share.
