$9.7 Billion! Berkshire Hathaway Acquires Chlor-Alkali Chemical Giant OxyChem!

On January 5, Specialized Plastic Vision learned that Berkshire Hathaway has completed the acquisition of Occidental's chemical business, OxyChem, for a transaction amount of $9.7 billion.

Berkshire and Occidental Petroleum announced on January 2 that the acquisition has been completed, and subsequent adjustments to the purchase price will be made as per usual practice.

Berkshire stated that OxyChem, headquartered in Dallas, operates in the United States, Canada, and Latin America. It is one of the top three producers of polyvinyl chloride (PVC), chlor-alkali, and chlorinated organic chemicals in the United States, and is also a significant supplier of calcium chloride.

The announcement also states that OxyChem will continue to be managed by the company's President and CEO, Wade Alleman.

The acquisition agreement was officially announced by both parties in October last year, and preliminary reports had already been covered by the media in September. The transaction was initially expected to be completed in the fourth quarter of 2025.

OxyChem aims to achieve a departmental profit of $1.1 billion and sales of $4.9 billion in 2024.

Berkshire's last major acquisition in the chemical sector was in 2011 when it purchased Lubrizol for $9.7 billion. Lubrizol remains a wholly owned subsidiary of Berkshire.

According to data from S&P Capital IQ, Berkshire is the largest shareholder of Occidental Petroleum Corporation, with a stake of 26.91%.

Occidental Petroleum Corporation has confirmed that, as previously disclosed, its subsidiary Environmental Resources Holdings LLC (referred to as ERH) will retain legacy tort claims and environmental liabilities "primarily related to historical operations outside the scope of the sold facilities" for OxyChem. The announcement stated that Glenn Springs will continue to manage the remediation of environmental sites on behalf of ERH. Occidental Petroleum added that it will continue to invest funds for environmental remediation over the coming years according to the approved work plan.