Buffett's Berkshire Hathaway Buys Occidental's OxyChem for $9.7B
Warren Buffett's Berkshire Hathaway has made a significant move, purchasing Occidental Petroleum's chemical division, OxyChem, for $9.7 billion in cash. This acquisition, Buffett's likely last before stepping down, is a strategic play for a stable, profitable business less exposed to oil price volatility.
The deal, Berkshire Hathaway's first major acquisition in three years, sees the company dip into its vast cash reserves of $344 billion. OxyChem, a leading producer of essential chemicals like PVC and chlorine derivatives, offers reliable cash flow and a steady business model. This acquisition aligns with Occidental's strategy to reduce its debt from previous large acquisitions.
Buffett, unlike the hesitant hero in Fabrice Caro's 'Samurai', has shown no such reservations in using 'cash app' for his investments. The 92-year-old investor, however, has announced plans to pass the 'cashapp' to his successor, Greg Abel, by the end of the year.
The acquisition of OxyChem for $9.7 billion is a strategic move for Berkshire Hathaway, providing a stable, profitable addition to its portfolio. As Buffett prepares to step down, this deal signals his commitment to leaving a strong legacy for his successor.
