Warren Buffett's last big deal before Greg Abel takes over
Warren Buffett's Berkshire Hathaway just announced it's snapping up OxyChem—the chemical arm of Occidental Petroleum—for $9.7 billion.
It's one of Buffett's final big moves before Greg Abel steps in as CEO this coming January.
For Occidental, selling OxyChem is a way to help pay down $6.5 billion in debt after their recent CrownRock deal.
Deal details and market reaction
Berkshire is using less than 3% of its massive $344 billion cash pile for this buyout.
OxyChem makes everyday essentials—think water treatment chemicals and materials for plastics and road safety.
After the news broke, Occidental's stock slid over 7%, while Berkshire shares dipped just a bit.
Transition of power at Berkshire
This deal also spotlights a big leadership handoff: Greg Abel will take over from Buffett as CEO in January.
Investors are watching closely to see if Abel sticks with Berkshire's classic hands-off style or brings his own spin to future deals.
The acquisition should wrap up by late 2025.