His last big deal as Berkshire CEO before Abel takes over?

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The deal depends on a close relationship between companies: Berkshire The largest contributor to Oxidental with A share of about 27 % is currently estimated at $ 11.9 billion.

In addition, Occidental pays 8 % profits at more than $ 8 billion in the preferred stocks that Berkshire keeps after what was actually, in fact, A loan to help Oxy to buy Petroleum Anadarko in 2019.

As part of this deal, Berkshire now carries orders to buy approximately 84 million additional shares from Oxy Common for less than $ 60 per share, which is just lower than the current price of $ 45.

Despite those relationships, Buffett told the shareholders two years ago Berkshire will not try to get the oxidantal completely.

in Directly on the “Squawk” box from CNBC“On the morning of this announcement, CEO Vicky Holoub said he would use $ 6.5 billion from the Oxychem purchase price to reduce his debts, which is less than $ 15 billion at that time Buy the product of the Prameian basin, Crofandrok In late 2023, for $ 12 billion.

“Now we will be able to start the shares resets again …

“The thing that we needed to do is to improve our public budget. So this is the last last step we need and now I think we are running the value of creation that will come much faster for our shareholders.”

Wall Street is not like Hollub about the deal.

Occidental Petroleum shares decreased by 8.1 % on Thursday, on the day of the announcement, but then fell slightly to close the week by 5.5 %.

Baron It is explicit In her evaluation: “One record of Varne Buffett at the expense of the CEO of Occidental Petroleum Vicki Hollub.”

She says the purchase price “can be a deal because profits in the sector are exposed to depression this year” and It is expected to rise.

In addition, Occidental will lose a chemical company that helped distinguish between energy competitors.

It will also face a $ 1.7 billion tax kick that would have been canceled if Berkchire used its oxy -favoring shares to pay the price of the deal, as some expected.

This means that Occidental will likely continue to pay more than $ 600 million of profits each year until the favorite shares are determined in 2029.

luck, On the other side, The benefits are highlighted From reducing debt loading.

He quotes the Wolf Doug Leggit research analyst, calls the deal. [roughly] 30 % of. It is completely self-self, it is logical, not in any somewhat useful way. “

This is the way Berkshire Greg Abel played Press statement of the deal This, interesting, Buffett’s name.

“We commend Vicky and Oxidal team for their commitment to the long -term financial stability of Occidental, as it is clear from their plan to use revenues to enhance the company’s public budget.”

Explain Warren Buffett How did the consistency and Charlie Monger gradually help him building Hathaway to what it is today.

Properties as of June 30, 2025, as stated in Berkchire Hathaway 13f file On August 14, 2025, with the exception:

The full list of property and current market values ​​are available from CNBC.com Berkshire Hathaway Portfolio Tracker.

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Alex Cryn, Warren Buffett Watch Editor