Warren Buffett may be signing off as CEO, but not before inking his largest deal in years.
Berkshire Hathaway Inc (NYSE:BRK.A) is buying Occidental Petroleum Corp's (NYSE:OXY) chemical unit, OxyChem, for $9.7 billion in cash, a move that gives Buffett one last marquee acquisition before handing the reins to Greg Abel in January.
Pre-market, Occidental was up 0.8% to $48.01.
The deal adds another industrial name to Berkshire’s portfolio, joining Lubrizol, the chemical group it acquired for $9 billion in 2011.
OxyChem produces chlorine for water treatment, plastics ingredients, and de-icing chemicals. It earned $213 million before tax last quarter.
For Occidental, the sale helps fund a broader effort to reduce debt, which includes $4 billion in recent asset sales following its CrownRock purchase last year.
Berkshire's $344 billion cash pile has been idle for some time; this deal puts part of it back to work.