Oct. 1 at 5:44 PM
$LYB $DOW
Berkshire is buying petrochemicals? 🤔
Berkshire's Potential Deal for Occidental Chemical Business Would Be a Win for Buffett
Buffett's Berkshire Hathaway is in talks to buy Occidental's petrochemical business for
$10 billion, according to a report Tuesday in The Wall Street Journal. If the deal goes through, Berkshire would be buying an attractive business at what looks like a reasonable price, benefiting because its earnings are currently depressed.
Buffett is price-sensitive in acquisitions and doesn't like to pay up for companies he is buying. If the deal happens, it would be the largest for Berkshire since its nearly
$13 billion purchase of the insurer Alleghany in 2022.
Occidental's chemical business, like those of other chemical producers like Dow and LyondellBasell Industries, has been hurt this year by weak margins. Dow and Lyondell stocks are down sharply this year, and Dow has slashed its dividend in half.
