Berkshire Hathaway has agreed to buy OxyChem, the chemical subsidiary, in an all-cash purchase of $9.7 billion. Occidental Petroleum’s financial and strategic link between the two companies is loaded with debt from prior major acquisitions like Anadarko and CrownRock. Occidental intends to use $6.5 billion of the proceeds to reduce its net debt under the $15 billion level.
The agreement comes after years of financial collaboration; Berkshire already owns about 29 to 30% of Occidental’s equity and has previously supported its proposal to buy Anadarko
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Still, some experts warn that the transaction moves the needle only slightly in the setting of Berkshire’s enormous cash trove, nearly $344 billion. Many see this purchase as Buffett’s last big play as he is expected to resign as CEO by year’s end. Under Greg Abel
For his part, Warren Buffett
How Berkshire combines OxyChem’s operations
