Warren Buffett's Berkshire Hathaway is preparing for one of its biggest business moves in recent years.
The firm is making a $9.7 billion deal to buy OxyChem, which is the biggest deal since acquiring the insurance firm Alleghany for $11.6 billion in 2022.
The move comes after Buffet announced he will retire as CEO at the end of the year.
Still, Buffet will remain chairman and play a key role in decisions about the company's huge cash reserves.
OxyChem is the chemical division of Occidental (OXY), a company where Buffet already holds a major investment.
Under the $9.7 billion all-cash deal, about $6.5 billion will go toward reducing Occidental’s debt, which has risen to over $20 billion.
“OxyChem has grown under Occidental into a well-run, safely operated business with best-in-class employees, and we are confident the business and those employees will continue to thrive under Berkshire Hathaway’s ownership,” said Occidental CEO Vicki Hollub in a press release.
OxyChem produces a range of useful chemicals such as chlorine for cleaning water, vinyl chloride for making plastics and calcium chloride for melting ice on roads along with many other products.
While, Berkshire controls a wide range of businesses under Buffet from insurance companies like Geico to BNSF railroad, energy utilities and popular food brands while also holding over $250 billion worth of shares in major corporations like Apple, Coca-Cola, Bank of America and American Express.
The acquisition deal is planned to be finalized by the last three months of the year.
Oxy stock:
Oxy's stock price saw a small increase of under 1% before the market opened.
