Berkshire in talks to buy Occidental's OxyChem for about $10 billion, WSJ reports

(Reuters) -Warren Buffett's Berkshire Hathaway is in talks to buy Occidental Petroleum's OxyChem petrochemical unit for about $10 billion, the Wall Street Journal reported on Tuesday citing people familiar with the matter. The potential sale of the OxyChem unit, which supplies products used in medical care, food security and construction, would add to a series of divestitures that Occidental has pursued in recent years in a bid to raise cash. The deal could come together within days, the report added. Berkshire is Occidental's largest shareholder, owning about 27% of the outstanding shares in the Houston, Texas-based company. The conglomerate began acquiring its stake in the oil and gas producer in February 2022, around the time of the Russian invasion of Ukraine. If the deal closes, it would mark Berkshire Hathaway's biggest deal since its $11.6 billion purchase of Alleghany in 2022. Berkshire Hathaway and Occidental Petroleum did not immediately respond to Reuters' requests for comment. Occidental has grappled with a heavy debt load, a legacy of its $55 billion acquisition of Anadarko Petroleum in 2019, when it outbid rival Chevron to secure shale oilfields in Texas. Anadarko's nearly a quarter-million acres in the Permian Basin hold oil and gas deposits that can produce output for decades using low-cost drilling techniques. As well, Occidental's $12 billion acquisition of privately held U.S. shale oil producer CrownRock last year significantly increased the company's debt load, which was $23.34 billion at the end of June. Berkshire does not plan to pay for OxyChem using Occidental stock, the Financial Times reported separately on Tuesday, citing a person familiar with the matter. FT had reported over the weekend that Occidental was seeking at least $10 billion for OxyChem. The OxyChem unit generated $2.42 billion in revenue in the first two quarters of 2025. Berkshire has built up a cash reserve nearing $350 billion as of June. Buffett, 95, is set to step down as chief executive of Berkshire Hathaway at the end of 2025. (Reporting by Katha Kalia and Pooja Menon in Bengaluru; Editing by Tasim Zahid)

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