Occidental Petroleum Corp. (Oxy) has entered a definitive agreement to sell wholly owned chemical subsidiary Occidental Chemical Corp. (OxyChem) to Berkshire Hathaway Inc. for $9.7 billion in cash, the companies announced Oct. 2.
Under the transaction terms, Berkshire Hathaway will acquire 100% of OxyChem's operating assets and workforce, including its 50% interest in Ingleside Ethylene LLC, a 50-50 joint venture with Orbia Advance Corp. SAB (formerly Mexichem SAB de CV, or Mexichem) that since 2017 has operated an ethane-based cracker equipped to produce 1.2-billion-lb/year of ethylene in Ingleside, Tex., as well as a related pipeline and storage complex in Markham, Tex.
In addition to Ingleside, Berkshire Hathaway’s acquisition will include the remainder of OxyChem’s chemical manufacturing business that produces vinyl chloride monomer, chlorine, caustic soda, vinyls used in water treatment, as well as pharmaceuticals and building materials.
As part of the agreement, Oxy will retain responsibility for legacy environmental liabilities of the OxyChem business through a separate subsidiary, which will continue to be managed by Glenn Springs Holdings Inc.
