Berkshire Hathaway has agreed to buy Occidental Petroleum’s chemical arm, OxyChem, in an all-cash deal valued at $9.7 billion, a move announced on October 2, 2025. This is straightforward capitalism at work: a patient, disciplined American company stepping in to preserve and grow a vital industrial business that supplies chemicals for water treatment, pharmaceuticals and construction.
OxyChem’s products are the kind of basic-manufacturing inputs America needs to keep homes safe and industry humming — not the pastime of coastal elites who cheer the hollowing out of domestic supply chains. The business supplies commodity chemicals used in water treatment, medical supplies and infrastructure materials, so keeping those operations strong is a win for public health and American manufacturing jobs.
Berkshire’s leadership under Greg Abel emphasized that OxyChem will operate as a subsidiary, letting experienced managers run the factories while Berkshire provides long-term capital and stability. That operational independence matters: conservative stewardship means running businesses for the long haul, not chasing quarterly virtue signaling or political favor.
Occidental says it will use roughly $6.5 billion of the proceeds to pay down debt and meet the target of bringing principal debt below $15 billion, a pragmatic step after recent acquisitions stretched the balance sheet. The company will retain the legacy environmental liabilities while outside specialists continue remediation work, which should clear regulatory uncertainty for the new owner and focus responsibility where it belongs.
Let’s be blunt: Occidental’s pivot to sell non-core assets underscores why fiscal discipline matters. After big-ticket purchases like CrownRock and the Anadarko financing, the company amassed significant leverage and is now pruning to get back to sound footing — a cautionary tale for corporate managers who forget that debt has consequences for workers and shareholders alike.
For believers in free enterprise, this transaction is the kind of deal you cheer: a strong American conglomerate using capital responsibly to preserve jobs and industrial capacity. Berkshire’s sizable investment history in energy and industrials — and its track record of buying well-run businesses and leaving competent managers in place — suggests OxyChem will be stabilized and allowed to serve American needs rather than serve as a pawn for short-term Wall Street trades.
This sale should remind policymakers and voters that preserving domestic manufacturing requires champions who understand balance sheets and the long view, not bureaucrats who prioritize grandstanding over results. With the deal expected to close in the fourth quarter of 2025, conservative Americans ought to welcome a return of steady ownership, secure jobs, and the common-sense vision that made our industrial base great.
