Berkshire Hathaway may be from Warren Buffett has scored a “genius” victory in getting $ 10 billion that may be the last big deal of his career

October 2 Deal is the first Berkshire advertisement ever This quotes from the incoming CEO Greg Abel does not mention the current CEO of the name.

Oxychem Business will work as a stand -alone power in Berkshire, while the Perkshire ownership of approximately 30 % of Olit Ossey must enhance Houston will use the largest part of the revenue to pay the high debt load that has declined its shares in recent years.

“It is a genius. It is definitely an overwhelming victory for Berkshire because it also helps the company to have 30 %,” said Leggate. “It is completely self-service, it is logical, and not in any somewhat useful way.”

Oxychem deal, 9.7 billion dollars, is the largest insurance player in Berkshire since the insurance player was attracted Aligani In 2022, in recent years, Berkshire focused on selling their investment shares and sits on a huge pile of about 350 billion dollars in cash.

Leggate Oxychem is called a potential cash click focusing on its growing resin in the manufacture of chlorine-alkali (polyvinyl chloride) pipes, building materials, medical equipment, and more. Its business is largely transmitted with the housing market, which can soon benefit than low interest rates. He said: “It is a specialized, low -median, and inconsistent business and has a pricing force in the light of the market structure.”

95 -year -old Buffett announced his retirement plans in May, although ABEL had long been exploited as a successor in the end (you can do it. Read luckABEL’s in -depth profile here).

Abel, Vice -President of Insurance Operations for a long time, praised the Duchess of Oxchim and Oxi Vicky Halloub, in this announcement.

“Berkshire gets a strong group of operational assets, with the support of an accomplished team,” Abel said in the announcement. “We look forward to welcoming Oxysim as a company for operating inside Berkshire. We commend Vicky and Oxidal team for their commitment to the long -term financial stability of Occidental, and it is also evident from their plan to use revenues to enhance the company’s budget.”

Berkshire did not immediately respond to the interview requests.

Specifically, Oxi said, it will use $ 6.5 billion of revenue to reduce debt and offer its main debts to the $ 15 billion target that he set after late Crown Rock Perokin Perock at $ 12 billion.

Holob said the deal helps Oxy to focus on its basic oil and gas, especially in the booming Permyan, while strengthening its financial position by reducing debt.

Oxychem represents approximately 20 % of the total Pratax Oxy, which brings more than a billion dollars annually.

Berkshire Oxisi flirting

The intimate relationship in Berkshire-OXY dates back to 2019 when Oxy entered a dramatic bid war with much larger Chevron For the Anadarko Petroleum oil product.

Anadarko chose to sell to Chevron when Oxy returned with a larger of $ 38 billion that includes more money – it is good to refuse Anadarko.

This show was only fruitful when Hollub made a torn trip to Omaha to see Warren Buffett and his team in Berkshire. After a 90 -minute meeting, Buffett adhered to $ 10 billion to finance the integration process in exchange for favorite stocks and an expanded oxygen share.

Oxygen agreements allowed their cash offer to about 80 % of the successful purchase price of the successful David-Versus-Goliath War against Chevron.

Since then, Buffett has increased Berkshire’s share in Oxy to more than 28 %.

But in the meantime, large oxygen acquisitions have left a much larger debt, especially entering the epidemic in 2020. Since then, the profit distributions have risen to 24 cents – still less than in 2019.

The Oxychem deal largely solve the debt problem, although Oxy will not start recovering the preferred Berkshire shares – and its annual separation by 8 % – until 2029.

“In a world of softening raw (pricing), Oxy has a lot of debt. It is unreasonable that it is good for Oxy to collect money and pay debts,” said Dan Beckening, founder and chief investment employee at Pickering Energy Partners.

Although ABEL may already be in the seat of the deals driver for Berkashire, Bicring said: “(Buffett) was the original investment driver of the oxy, so I’m sure he participated.”

Beckering compared the potential double Berksheire Woz of Oxysheim and Oxy to a “circular ring” such as the investments of the booming AI sector in each other’s companies: “AI in a circular link where Nafidia It gives money to a person, gives money to a person, returning it to Nafidia. ”

The only problem for Oxy on October 2, though, is its stock that was amazing by 7 %. Oxy surpassed ETF S & P Oil and ETF gas by 2.5 % this week until October 1, to a large extent bread in the deal before the October 2 announcement.

Oxy sells its chemical works a little discount when the broader petrochemical sector is near a periodic basin.

Beckering said there was some “dynamic news” in playing. But the sale also reduces some hopes that Berkshire buys the oxygen completely, which may harm the shares.

“By buying these pieces, the possibilities he will buy all have fallen,” Beckering said.

A year ago, this Hollub correspondent asked at any point that Berkshire may control many oxygen stocks. Its response: “We will not consider it too much.”

Fortune Global Forum Returns 26 to 27 October, 2025 in Rydah. Executive chiefs and world leaders will meet for a dynamic event for the call only forms the future of business. Apply for an invitation.