Berkshire Hathaway Buffett is approaching a $ 10 billion deal for the petrochemical oxidal unit

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The Hathaway Berne of Warren Buffett concludes with a 10 billion dollar deal to buy the petrochemical department in Oxidental Petroleum in what could be the largest cluster deal in three years.

Two people are aware of this issue, that the talks between the two parties are in an advanced stage and can be completed within days.

The Houston -based Financial Times reported that Houston was in late talks to sell it. Oxychem section As part of the process of withdrawing investments designed to reduce the company’s debt download at a value of $ 24 billion.

Pavite is the largest contributor to Oxidental, one of the largest oil and gas producers in the United States. Berkshire It owns 26.9 percent of the shares of the distinguished oil group. A person familiar with the matter said that the Buffett bloc is not planning to pay the price of Oxychem using Occidental.

The 95 -year -old investor, who will rely as CEO of Burkshire at the end of 2025, collected a huge cash stack of about 350 billion dollars in the group.

If you bought Buffett Oxychem, this will be the largest acquisition in Berkshire since I bought the insurance group Alghany for $ 11.6 billion in 2022.

In 2019, Berkshire supported the $ 55 billion oxidant offer to his opponent Anadarco Petroleum, pledging to do so. Invest 10 billion dollars To finance the deal.

Berkshire and Occidental did not respond immediately to request a comment. The Wall Street Journal was the first to report that Berkshire Hathaway was the potential buyer.

The Oxychem’s Occidental section has achieved approximately $ 5 billion of revenues in 12 months until the end of June. The market value of Occidental reached about $ 46.5 billion in the closing market on Tuesday.

Occidental is wrestling for several years with a large debt burden, as a result of its independence in Anadarko and the acquisition of Crowrock in 2023.

Oxidental shares have increased over the past 12 months – as it has been closed about 8 percent to close at $ 47.25 on Tuesday – due to low oil prices and concerns about the company’s debt burden.

During the same period, the S& P 500 normative index in Wall Street increased by more than 15 percent.

The company’s decision to sell its petrochemical unit was good because it would reduce debt and enable the group to follow up the acquisitions of increasing basic oil and gas companies.

He said: “This reduces the leverage in Oxidental and prepares them to go out and be one of the business and gas duties. We believe that the next step will be a deal from all stocks to the counterpart.” “Does Occidental want to become the fourth specialization in the United States with a focus on the source like Conocophillips? We think they should.”

Additional reports by Eric Platt