Occidental Petroleum Considers Major Divestiture: OxyChem on the Block
Occidental Petroleum (NYSE:OXY) is reportedly exploring the sale of its OxyChem division in a deal potentially worth over $10 billion, according to the Financial Times. This move would represent Occidental's largest divestiture to date and could create a major independent player in the petrochemical industry.
OxyChem produces essential chemicals such as vinyls and chlor-alkali products. While profitable, it has long been viewed as outside Occidental's core focus on oil and gas exploration and production. CEO Vicki Hollub has been actively streamlining the company's portfolio since the $55 billion acquisition of Anadarko in 2019, a deal that significantly increased Occidental's debt burden.
Warren Buffett's Berkshire Hathaway Watching Closely
Warren Buffett's (Trades, Portfolio) Berkshire Hathaway (BRK.A, BRK.B) is a major investor in Occidental and is closely monitoring the potential sale. Berkshire Hathaway has supported Occidental's strategy to reduce debt and refocus on its core energy business. A successful sale of OxyChem would significantly strengthen Occidental's balance sheet and accelerate its streamlining efforts.
An announcement regarding the sale could be made within weeks if negotiations proceed smoothly. Investors are keenly watching for updates, as this divestiture could signal a positive turning point for Occidental's financial health and strategic direction.
- Potential sale of OxyChem for over $10 billion.
- Largest divestiture in Occidental's history.
- Berkshire Hathaway supports the move.
- Could significantly improve Occidental's balance sheet.