9.7 billion dollars! Buffett Acquires More Chemical Assets Again

Thread Content

On October 2, Buffett’s Berkshire Hathaway announced that it would acquire OxyChem, the chemical subsidiary of Western Oil, for $9.7 billion in cash. The transaction is expected to be completed in the fourth quarter. 　　OxyChem has almost all of its production assets located in North America, and it is one of the largest producers of chlor-alkali products and polyvinyl chloride in the region. In 2024, OxyChem generated earnings of $1.1 billion and sales of $4.9 billion. 　　Berkshire has made multiple investments in Western Oil since 2019; it currently holds about 28% of the company’s shares, making it its largest shareholder. This acquisition is seen as a move by it to help Western Oil alleviate its debt burdens, while simultaneously expanding Berkshire’s presence in the chemicals sector. 　　Western Oil said it plans to use $6.5 billion of the proceeds from the deal to repay debts, with the goal of reducing its debt to below $15 billion. By the end of 2024, Western Oil had debts of around $24 billion, and in the first half of 2025 it announced a plan to divest assets worth nearly $4 billion. 　　This is the second time Buffett has made a significant bet on the chemicals industry. As early as 2011, Berkshire acquired specialty chemicals manufacturer Lubrizol for nearly $10 billion.