"Warren Buffett has made what may be his final major acquisition, with Berkshire Hathaway purchasing the petrochemical division of Occidental Petroleum. Buffett already owns a large portion of Occidental - between 27% and 35% of its common stock - as well as a significant amount of preferred shares from an earlier deal. This new transaction provides Occidental with about $10 billion, which will help the company reduce its debt and improve its balance sheet."
"In turn, that benefits Buffett and Berkshire as major shareholders, creating what Doug and Lee describe as another example of Buffett's classic "buddy deal." The petrochemical division being acquired reportedly includes specialized products that are in high demand, making the move strategically sound beyond financial engineering. The 24/7 Wall St. hosts also note that Buffett may be setting up Berkshire's future leadership transition, as Greg Abel takes over as CEO while Buffett remains chairman."
Berkshire Hathaway purchased Occidental Petroleum's petrochemical division, a unit that includes specialized, high-demand products. The transaction provides Occidental about $10 billion to pay down debt and improve its balance sheet. Warren Buffett already holds roughly 27–35% of Occidental's common stock and significant preferred shares from an earlier financing. The deal benefits Berkshire and Buffett as major shareholders and resembles prior partner-friendly transactions. The acquisition combines strategic industrial value with balance-sheet repair rather than pure financial engineering. The move coincides with corporate governance adjustments that install Greg Abel as CEO while Buffett remains chairman, supporting leadership transition planning.
#warren-buffett #berkshire-hathaway #occidental-petroleum #petrochemical-acquisition #succession-planning
Read at 24/7 Wall St.
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