US Oxy and Berkshire reach agreement on OxyChem sale
by ChemOrbis Editorial Team - content@chemorbis.com
US Occidental Petroleum (Oxy) will sell its chemical subsidiary, OxyChem, to Berkshire Hathaway in a $9.7 billion cash transaction, according to a press release issued on October 2. The deal is scheduled to close in the fourth quarter of 2025, subject to regulatory approvals.
The agreement follows weeks of market speculation. Reports in late September suggested that Occidental was preparing to divest OxyChem in a deal valued around $10 billion as part of efforts to cut debt. Soon after, media identified Berkshire Hathaway as the likely buyer, highlighting its position as Occidental’s largest shareholder with nearly a 27% stake.
OxyChem, a major North American producer of chlor-alkali, vinyls, and PVC, posted $4.9 billion in sales and $1.1 billion in earnings in 2024. Occidental said it will use $6.5 billion of the proceeds to reduce borrowings, aiming to bring total debt down to roughly $15 billion. CEO Vicki Hollub described the sale as strengthening Occidental’s balance sheet, while Berkshire vice chairman Greg Abel said OxyChem will become a standalone subsidiary within the conglomerate.
The agreement follows weeks of market speculation. Reports in late September suggested that Occidental was preparing to divest OxyChem in a deal valued around $10 billion as part of efforts to cut debt. Soon after, media identified Berkshire Hathaway as the likely buyer, highlighting its position as Occidental’s largest shareholder with nearly a 27% stake.
OxyChem, a major North American producer of chlor-alkali, vinyls, and PVC, posted $4.9 billion in sales and $1.1 billion in earnings in 2024. Occidental said it will use $6.5 billion of the proceeds to reduce borrowings, aiming to bring total debt down to roughly $15 billion. CEO Vicki Hollub described the sale as strengthening Occidental’s balance sheet, while Berkshire vice chairman Greg Abel said OxyChem will become a standalone subsidiary within the conglomerate.
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