"It's genius. It's certainly a win-plus for Berkshire because it also helps the company that they own 30% of,"
"It's completely self-serving, it's logical and-not in any nefarious way-definitely helpful."
"It's a low-volatile, uncontroversial, niche business that has pricing power given the market structure,"
Berkshire Hathaway agreed to buy Occidental Petroleum's chemicals business, OxyChem, for $9.7 billion in cash. The deal is Berkshire's largest since acquiring Alleghany in 2022 and follows years of portfolio adjustments while Berkshire holds roughly $350 billion in cash. Analysts say OxyChem is a steady, low-volatility business focused on chlor-alkali and PVC resin with pricing power linked to housing demand. Occidental plans to use most proceeds to pay down heavy debt, which could lift its stock and indirectly benefit Berkshire's nearly 30% ownership of Occidental. The Oct. 2 announcement quotes incoming CEO Greg Abel and omits the current CEO's name.
Read at Fortune
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