Berkshire Hathaway has acquired OxyChem, a subsidiary of Occidental Petroleum, for $9.7 billion, positioning itself strategically in the chemicals sector and enhancing its portfolio of essential industrial businesses.

Overview of the Deal

Berkshire Hathaway Inc. announced on October 2, 2025, its acquisition of 100% of OxyChem, a subsidiary of Occidental Petroleum, for an implied equity value of $9.7 billion. This acquisition marks a significant expansion for Berkshire Hathaway into the chemical industry. OxyChem specializes in producing essential chemical products, including polyvinyl chloride (PVC), which serve critical roles in infrastructure such as water pipelines, medical supplies, refrigerants, and renewable energy applications.

The announcement of this strategic acquisition surprised Wall Street, yet it aligns with Warren Buffett’s value-investing philosophy. Buffett typically avoids high-growth tech stocks, focusing instead on undervalued equities with inherent stability and steady cash flow. The significance of OxyChem's operations, which are pivotal to various essential sectors of the U.S. economy such as utilities, healthcare, and renewable energy, adds to its intrinsic value. This acquisition also provides immediate financial relief for Occidental Petroleum, seeking to reduce its considerable debt burden accumulated through previous mergers and acquisitions.

Industry Overview

The chemical industry in the United States is robust and diverse, contributing significantly to the economy. It encompasses a wide range of sectors, from basic chemicals to specialized products necessary for various applications, including con