"Berkshire Hathaway said on Thursday that it would pay $9.7 billion in cash for Occidental Petroleum's chemicals business, OxyChem: its biggest acquisition since it paid $12 billion for insurer Alleghany in 2022. David Kass, a finance professor at the University of Maryland and longtime Buffett blogger, said the 7% slump in Occidental stock after news of the deal broke suggested Berkshire had secured "extremely favorable terms." That's unsurprising given"
"It began purchasing the oil company's common stock in 2022, growing its ownership stake to 28% as of June this year. Berkshire and Occidental didn't immediately respond to requests for comment from Business Insider. Brett Gardner, an analyst and the author of "Buffett's Early Investments," said Berkshire acquiring OxyChem was a "win-win," as Berkshire was getting a good price and Occidental would be able to bolster its balance sheet."
Berkshire Hathaway agreed to buy Occidental Petroleum's chemicals unit OxyChem for $9.7 billion in cash, marking Berkshire's largest deal since 2022. The purchase follows Berkshire's prior financial support and equity accumulation in Occidental, which increased Berkshire's stake to 28% by June. Occidental plans to use proceeds to cut roughly $6.5 billion of debt and reach a target below $15 billion. Berkshire held a record $344 billion in cash at the end of June. Analysts called the transaction favorable for Berkshire and helpful for Occidental's balance sheet, and observers expect Buffett may still pursue additional deals.
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