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Berkshire Hathaway buying OxyChem for $9.7B — could be Warren Buffett's last big deal

1. Berkshire Hathaway buys Occidental Petroleum's chemical division for $9.7 billion. 2. This acquisition may mark Warren Buffett's last major deal. 3. Buffett's focus on cash reserves indicates challenges in finding attractive acquisitions. 4. OxyChem's earnings fell to $213 million in Q2, down from nearly $300 million. 5. Deal closing expected in Q4 strengthens Berkshire's position in chemicals.

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FAQ

Why Bullish?

The acquisition enhances Berkshire’s portfolio and profitability potential, leveraging existing holdings like Lubrizol. Historically, Berkshire’s acquisitions have led to long-term value increases.

How important is it?

This strategic acquisition strengthens Berkshire’s market position; therefore, it’s likely to influence investor confidence and stock performance.

Why Long Term?

The deal adds operational assets likely to yield steady revenue and profit over years as part of Berkshire's strategy for growth.

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