Warren Buffett Berkshire Oxchim

Warren Buffett Berkshire Hathaway It announced on Thursday that it had reached a purchase deal Oxidental Petroleum The petrochemical unit, Oxychem, for $ 9.7 billion in cash.

It represented the largest deal in Berkshire since 2022, when it paid $ 11.6 billion for Alghany insurance company. It also comes at a time when the group sits on $ 344 billion in cash, near the company’s record.

Occidental shares fell more than 7 % on Thursday after the announcement.

Berkshire is already a major investor in oxidantal, and holds a 28.2 % stake as of the end of June. “He will not fully control the Houston-based oil company,” said 95-year-old Puffett and step down as CEO at the end of the year.

Oxychem manufactures water treatment, health care and other commercial chemicals. Oxidental said it would use $ 6.5 billion of revenue to pay off debt.

Vicky Holoub, CEO of Oxidental, said that the reduction of the debt resulting from the deal would enable its company to restart the shares of re -purchase.

“The problem is that our debt is faster, so this is the only suspended issue that I think will now open our shares and allow the shareholders to feel more comfortable, in the hope that it will add to their positions and others,” said Hallub on Thursday.Squawk box. “Now we will be able to start the participation program again. … this is the last step we need in our main transformation that we started 10 years ago. “

The last time Berkshire concluded a deal in the chemical space in 2011, where Lubrizole bought for a similar number of $ 10 billion.

“We look forward to welcoming Oxysim as a subsidiary of operation inside Berkshire,” Greg Abil, Vice President of Insurance Operations in Berkshire, said in a press statement.

Abel, who will succeed Pavite as a CEO of Burkashire in 2026, added that Holoub shows her “its commitment to the stability of the financial oxidantal in the long term, as it is clear from their plan to use revenues to enhance the company’s public budget.”

Both companies expect the deal to be closed in the fourth quarter. Wall Street Magazine I mentioned for the first time in the deal earlier this week.

Puffett participated for the first time in Oxidental in 2019 when he helped funding Buy Oxidental from Anadarko petroleum With a commitment of $ 10 billion. Favorite stocks and cars are received to buy regular shares in return.

Holoub said with Oxidental growth, it will start recovering the preferred Berkshire share in 2029. Oxidental is currently paying 8 % distribution of profits to Berkshire’s favorite.