Berkshire Hathaway, Inc. ( BRK/A ) is in talks to acquire Occidental Petroleum Corp. ( OXY )‘s chemical unit, OxyChem, in a deal valued at roughly $10 billion.

If finalized, it would be Berkshire's biggest purchase since 2022 and could be completed soon, according to the Wall Street Journal.

OXY stock is moving. See the real-time price action here.

The Details:

Occidental, based in Houston, is primarily known for oil and gas, with a market capitalization of about $46 billion.

Read Next: President Trump Lights Up Cannabis Stocks With Pro-CBD Truth Social Post

OxyChem makes products used in disinfecting water, battery recycling, and paper production, bringing in nearly $5 billion in revenue in the year ending June.

Berkshire is already Occidental's largest shareholder.

Should the negotiations succeed, the deal would mark Buffett's second major investment in chemicals; Berkshire bought Lubrizol in 2011 for almost $10 billion.

The Financial Times first reported Occidental's effort to sell OxyChem, though it did not identify the buyer.

The Background:

Berkshire's last major deal was the $11.6 billion acquisition of Alleghany in 2022.

Buffett began building ties with Occidental in 2019 when CEO Vicki Hollub sought his backing to outmaneuver Chevron Corp. ( CVX ) in a bid for Anadarko Petroleum.

Berkshire provided $10 billion for preferred shares, helping finance Occidental's $38 billion takeover. While the move left Occidental with heavy debt and spurred criticism from Carl Icahn, Buffett increased his stake as Icahn exited, eventually buying around 28% of the company.

Occidental has recently been selling assets to reduce debt, repaying $7.5 billion by August. Meanwhile, Berkshire is holding record cash reserves of about $344 billion as of June.

Read Next:

Datavault And New Era Energy: AI Penny Stock Powerhouses