Berkshire Hathaway Completes $9.7B OxyChem Acquisition, Boosting Chemical Manufacturing Platform
Berkshire Hathaway has completed the $9.7 billion acquisition of OxyChem from Occidental, adding a top-three U.S. producer of polyvinyl chloride, chlor-alkali and chlorinated organic chemicals. OxyChem’s operations across the U.S., Canada and Latin America supply essential materials for water treatment, pharmaceuticals, automotive and construction markets under CEO Wade Alleman.
1. CEO Succession and Leadership Transition
On January 1, 2026, Greg Abel officially succeeded Warren Buffett as CEO of Berkshire Hathaway Class A (BRK-A), ending Buffett’s 60-year tenure. Buffett remains chairman and retains ultimate voting control, but Abel now holds final authority over major capital deployment decisions. At the 2024 annual meeting, Buffett endorsed Abel’s business acumen, stating, “I would leave the capital allocation to Greg. He understands businesses extremely well.” Investors will scrutinize how Abel balances operational oversight of Berkshire’s 32 wholly owned subsidiaries with the group’s extensive public-equity portfolio, a dual responsibility he has been preparing for since joining the company in 2000 and serving as vice chairman of non-insurance operations since 2018.
2. Enormous Cash Hoard Elevates Stakes of Allocation
Berkshire Hathaway Class A reported cash, cash equivalents and U.S. Treasury bills totaling over $350 billion at September 30, 2025, the largest balance in its history. With insurance float and subsidiary free cash flows funneling into headquarters, even a single acquisition or share repurchase in the tens of billions could shift returns by several percentage points. Under Buffett, repurchases ceased in mid-2024; resumption under Abel would signal his conviction that BRK-A stock is undervalued. Likewise, a transformational acquisition—such as last year’s $9.7 billion purchase of OxyChem—would provide the first true glimpse of Abel’s risk appetite and strategic priorities.
3. Early Share Performance and Investor Sentiment
In the trading session following the CEO handoff, Class A shares dipped approximately 1.4% intraday before recovering modestly, extending a mild underperformance relative to the S&P 500’s 16.4% total return in 2025. Over Buffett’s final year as CEO, BRK-A gained 10.9%, marking its tenth consecutive year of positive returns but trailing the broader market. Investors gauge Abel on his ability to sustain the compounded annual gains of 19.9% delivered from 1964 through 2024. Key metrics under observation include any large-scale capital move, the pace of share repurchases, and adjustments to the public-equity sleeve previously managed by Todd Combs and Ted Weschler.