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Berkshire Hathaway to buy Occidental's OxyChem for $9.7 billion, in Buffett's biggest deal in three years

1. Berkshire Hathaway buys Occidental's OxyChem for $9.7 billion. 2. Deal enhances Berkshire's petrochemical portfolio; expects to close in Q4. 3. Occidental plans to use proceeds to reduce debt and buy back stock. 4. Berkshire holds 28.2% stake in Occidental, enhancing its financial influence. 5. Buffett's succession planning continues as he steps down as CEO.

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FAQ

Why Bullish?

Berkshire's acquisition signifies confidence in Occidental's growth potential, similar to earlier successful investments. Previous deals, like purchasing Lubrizol, contributed positively to Berkshire's long-term value.

How important is it?

The strategic acquisition directly links to Berkshire's core operations and investment philosophy, showing long-term commitment to growth.

Why Long Term?

The acquisition strengthens Berkshire’s portfolio, potentially enhancing cash flow and share value over time, particularly as Occidental stabilizes post-debt reduction.

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