Occidental shares drop over 7% despite $9.7 billion deal with Warren Buffett's Berkshire Hathaway — Details here

US Stocks: Occidental Petroleum share price dropped more than 7% during the Wall Street session on Thursday, 2 October 2025, despite the company's $9.7 billion deal with Warren Buffett's Berkshire Hathaway for the acquisition of the company's chemical business.

According to a Bloomberg report, citing Occidental Chief Executive Officer Vicki Hollub, the energy company has completed making mega deals, as the firm reportedly reached its asset-sales target with the chemical-unit deal.

“I believe we are done with the big deals,” said Hollub. “This pretty much gets us where we need to be.”

Even though the shares jumped after the announcement on the premarket NYSE, they eroded their initial gains and continued their fall during the Wall Street session after the opening bell on Thursday.

Occidental's deal with Berkshire

Warren Buffett's Omaha-based investment giant, Berkshire Hathaway, on Thursday announced that the company plans to acquire Occidental Petroleum's chemical business, OxyChem.

The investment giant plans to execute the chemical business acquisition deal through an all-cash transaction valued at $9.7 billion, according to an official statement.

“Berkshire Hathaway (NYSE: BRK) and Occidental (NYSE: OXY) today announced a definitive agreement for Berkshire Hathaway to acquire Occidental’s chemical business, OxyChem, in an all-cash transaction for $9.7 billion, subject to customary purchase price adjustments,” the company said in its statement.

The energy company aims to leverage and capitalise on this opportunity, with ‘20+ years of low-cost resource runway’, to deliver long-term value for its investors.

Occidental will use $6.5 billion to pay off its debts and achieve the target of principal debt below $15 billion, announced in December 2023.

Occidental share price

Occidental Petroleum share price closed 7.31% lower at $44.23 after Thursday's stock market session, compared to $47.72 at the previous market close.

Shares of the company gave stock market investors more than 348% returns on their investment in the last five years. However, Occidental shares lost over 17% in the last one-year period.

On a year-to-date (YTD) basis, the shares of the energy company lost 11.20% in 2025 and are trading 7.95% lower in the last one-month period. The company's market capitalisation (M-Cap) stood at $46.98 billion as of the stock market close on Thursday, 2 October 2025.

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