After nearly a week of public speculation, Occidental announced Wednesday the $9.7 billion all-cash sale of its chemical business OxyChem to Berkshire Hathaway in what could be Warren Buffet’s last major deal.
The transaction is boldest in a series of Oxy moves to shed debt load following its $12 billion acquisition of MidCrownRock LLP, a deal that closed in August 2024.
In its announcement, Occidental said it expects to use $6.5 billion of the proceeds to reduce its debt below $15 billion as promised after the CrownRock acquisition announcement in December 2023.
Since then, the company says it has divested more than $4 billion in non-core assets and paid down more than $7.5 billion in debt.
Under the agreement an Occidental subsidiary will retrain OxyChem’s legacy environmental liabilities, with Glenn Springs Holdings continuing to manage existing remedial projects.
“This transaction strengthens our financial position and catalyzes a significant resource opportunity we’ve been building in our oil and gas business for the last decade,” said Vicki Holub, Occidental president and CEO. “OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership.”
Sylvia Kerrigan, a 2025 Houston Corporate Counsel Award for Lifetime Achievement recipient, is the chief legal officer of Occidental.
The Berkshire buyers should be familiar with the business. Under Buffet’s leadership Berkshire Hathaway has acquired at least a 28 percent stake of Occidental according recent filings with the SEC. Buffet has announced his intent to retire from Berkshire at the end of the year.
Occidental outside legal counsel is Cravath, Swaine & Moore. Berkshire Hathaway was advised by Kirkland & Ellis.
Oxy’s financial advisor is Barclays.
The Kirkland team advising Berkshire Hathaway was led from Houston by Cyril Jones and Andy Calder alongside Jacob Volz and Bridget Hamway.
Mark Dundon and Rebecca Fine advised on tax; Dan Lewis and Todd Herst handled IP issues with Stephen Jacobson and Stephanie Jeane on compensation; Justin Coddington and Jack Amaro on benefits; Christie Alcala and Paul Vasiloff on labor issues and Damien Lyster and Cassidy Hall on energy regulatory matters.