OMAHA, Nebraska: Berkshire Hathaway will pay US$9.7 billion for Occidental Petroleum's chemical division in a deal that may mark Warren Buffett's final large-scale acquisition as he prepares to step back from the CEO role.

Notably, Buffett's name was absent from Berkshire's announcement, underscoring the gradual transition to Vice Chair Greg Abel, who is set to succeed him as CEO in January. Still, given Buffett's long relationship with Occidental CEO Vicki Hollub and his habit of weighing in on any deal over $1 billion, his influence loomed in the background.

Buffett will remain chairman and retain a voice in how to deploy Berkshire's massive $344 billion cash pile. That reserve has swelled in recent years as high valuations, fueled by competition from hedge funds, limited his acquisition options. Berkshire's last major purchase was the $11.6 billion takeover of Alleghany Insurance in 2022.

OxyChem, which produces chlorine for water treatment, vinyl chloride for plastics, and calcium chloride for road treatment, generated $213 million in pretax earnings in the second quarter. Though the business is solid, the $9.7 billion deal represents less than three percent of Berkshire's cash and is unlikely to move the conglomerate's overall results. Investors reacted coolly, with Berkshire shares dipping slightly and Occidental's stock sliding more than seven percent after the news.

The acquisition will sit alongside Berkshire's other chemical holdings, such as Lubrizol, bought in 2011 for $9 billion. "Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team," Abel said.

Analysts said it was natural for Abel to take the lead on this deal as he readies to succeed Buffett. Jim Shanahan of Edward Jones noted that investors are watching to see how Abel's style might differ. Unlike Buffett, who largely left acquired businesses alone, Abel may adopt a more hands-on approach and seek synergies among Berkshire subsidiaries.

For Occidental, the sale helps pay down debt after its $12 billion CrownRock acquisition in late 2023. The company has already sold $4 billion in assets and plans to apply $6.5 billion of OxyChem's proceeds to cut debt below $15 billion while retaining OxyChem's environmental liabilities.

Berkshire already owns more than 28 percent of Occidental and holds warrants to buy nearly 84 million additional shares. It also holds $8.5 billion in preferred shares paying eight percent annual dividends. Buffett repeatedly said he had no plans to buy the oil giant outright but had steadily built his stake.