OMAHA, Neb. (AP) — Berkshire Hathaway is buying Occidental Petroleum’s chemical division for $9.7 billion in what may be the last big acquisition involving the consummate dealmaker, Warren Buffett.
Buffett wasn’t mentioned anywhere in materials released by Berkshire Hathaway discussing the deal Thursday, potentially signaling a passing of the torch to Vice Chair Greg Abel, to whom Buffett will hand the CEO title in January. But given the relationship that Buffett has with Occidental CEO Vicki Hollub, who he has praised ever since helping her with an acquisition back in 2019, and the fact that he likes to be involved anytime Berkshire spends more than $1 billion dollars, he certainly had a role.
Even after the transition, Buffett will remain chairman at Berkshire and will still be involved in deciding how to spend the conglomerate’s colossal pile of more than $344 billion cash.
Berkshire’s cash reserves have been growing for years because Buffett has been unable to find any major acquisitions at attractive prices since completing the $11.6 billion acquisition of Alleghany Insurance in 2022. Prices for big acquisitions have been driven higher in recent years by the entry of more hedge funds in the market.
What Berkshire is buying