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.

Read all stories by Anubhav mukherjee

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.