Warren Buffett Berkshire Occidental Oxychem
Warren Buffett spoke on May 3, 2025 at the Berkshire Hathaway in Nebraska, Omaha, at an annual shareholders’ meeting.
CNBC
Berkshire Hathaway from Warren Buffett announced that he had reached an agreement to buy on Thursday Occidental Petrol The petrochemical unit Oxychem, $ 9.7 billion in cash.
The agreement points out when Berkshire pays $ 11.6 billion for the insurer Alleghany since 2022. In addition, the holding comes at a time when a record near a record for the company is sitting at a time when the company sits.
Following the announcement, Occidential shares increased by 1.4% in marketing on Thursday.
Berkshire is already a major investor in Occhental, which has 28.2% of shares since the end of June. 95 years old and resigned as CEO at the end of the year, Buffett said he would not get full control of the Houston -based oil company.
Oxychem produces water treatment, health and other commercial chemicals. Occidental said he would use $ 6.5 billion to pay the debt.
OCCENTAL CEO Vickki Hollub said that the debt reduction caused by the agreement would restart the company’s purchase process.
“The problem is reducing our debt faster, so it solves an extraordinary problem that I think will now open the lock of our stock and allow shareholders to feel more comfortable to come to others.” He said. “Now we will be able to start our sharing purchase program again … This is the last step we need in our big transformation that we started 10 years ago.”
Berkshire made an agreement in the last chemical area, it was in 2011 and bought Lubrbrizol for a similar $ 10 billion figure.
“We are looking forward to welcoming Oxychem as a business subsidiary in Berkshire,” Greg Abel, Vice President of non -insured operations in Berkshire. He said.
Buffett’s Berkshire CEO in 2026, Abel, Hollub’s “company’s plan to strengthen the balance sheet of the company’s plans to use revenues as shown in Occidental’s long -term financial stability” he added, he added.
Both companies expect the agreement to close in the fourth quarter. Wall Street Journal first reported the process at the beginning of this week.
Buffett first interested in Occidental when he helped Bankroll in 2019 OCCENTAL’S PURCHASES With a commitment of $ 10 billion. In return, he received the preferred share and orders to buy stocks.
Hollub said that he would start using Berkshire’s preferred stock in 2029, while expanding the Occidental cash position. Occidenttal is currently paying 8% dividends according to Berkshire’s preferences.
