Berkshire Hathaway The chemical division of oxidantal petroleum is purchasing for $ 9.7 billion, which may be the final major acquisition associated with the Ghagh Delimaker, Warren Buffett.
Buffett was not mentioned anywhere in the materials released by Berkshire Hathaway, which, while discussing the deal on Thursday, indicates the potentially vice chair Greg Abel to pass the torch, which Buffett would hand over the CEO title in January.
Buffett will remain president in Berkshire and will still be involved in deciding how to spend a huge pile of groups of more than $ 344 billion.
Berkshire’s cash reserves have been growing over the years as Buffett is unable to find any major acquisition at attractive prices since Buffett has completed $ 11.6 billion acquisition in 2022. Prices for large acquisitions have been run at a higher level in recent years than the entry of more hedge funds in the market.
Oxicam makes things like chlorine for water treatment, vinyl chloride and calcium chloride are used for plastic that is used to treat icy roads with classification of other chemicals. It would fit well inside the Berkshire with lubrizole, which was bought by Buffett for $ 9 billion in 2011.
“Berkshire is receiving a strong portfolio of operating assets supported by a skilled team,” Abel said in a prepared statement. “We are ready to welcome oxycam as an operating assistant within Berkshire.”
Oxicam produced $ 213 million in prretax earnings for oxidantls in the second quarter, although it was below the previous year when it produced approximately $ 300 million for the company. This year, Oxidantl has sold some of its assets to generate $ 950 million to pay loans in Permian Basin. Since it completed Craunrock acquisition in December 2023, Oxidantl sold assets worth about $ 4 billion to pay $ 7.5 billion. This oxycam deal will accelerate it.
Oxidental hopes to use an income of $ 6.5 billion for a loan less than the Berkshire deal and achieve the target of major loans below $ 15 billion after the announcement of your Craunrock acquisition.
Berkshire organized more than 28% oxidantl stock and was warrant to buy 83,911,942.38 shares in major oil and gas producer for $ 59.586 per share before the deal. And Berkshire placed a favorite oxidant shares worth about $ 8.5 billion, which was picked up in 2019 when it helped fund the oil manufacturer to fund the purchase of the dishonor that oxidantl is paying 8% dividend every year.
Buffett had earlier told Berkshire’s investors that he would not sell oxidantal stake and he was buying more shares from time to time, but he also told the shareholders in 2023 that he had no plans to buy all the out of the out.
Berkshire has a generous classification of dozens of companies, including Geico and many other insurers, BNSF railroads, a portfolio of major utilities and some famous brands dairy Queen And see Candy. Buffett has formed the group in the last 60 years. Apart from owning lump sum companies, Berkshire has more than $ 250 billion shares, including big bets. AppleCoca-Cola, Bank of America and American Express,
The oxycam deal is expected to be closed in the fourth quarter of this year.
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AP Business Writer Mitchell Chapman contributed to this report.