Barron’s also added:

• A report by the FT described Abel as the transaction’s mastermind. Berkshire paid a reasonable price for the business based on what could have been trough earnings in 2025 with profit upside from a capital spending plan by Occidental. Occidental retained $1.7 billion of environmental liabilities.

• The purchase price amounted to about eight times 2025 earnings before interest, taxes, depreciation, and amortization. U.S.-oriented chemicals companies are benefiting from advantaged pricing on feedstocks like natural gas amid international energy dislocations caused by the Middle East conflict.

Barron’s estimates that Berkshire probably has a 30%-plus gain in the value of OxyChem, or more than $3 billion, since the deal closed. OxyChem operates 23 manufacturing plants almost entirely in the U.S. and is a leading producer of caustic potash, chlor-alkali and polyvinyl chloride.

• Occidental used the after-tax proceeds to cut its debt to below $15 billion, reduce interest expense and allow it to reallocate capital to high-return projects in its core oil and gas business. JP Morgan analyst Arun Jayaram has written about Occidental’s rationale, citing concern about growth in Chinese chemical capacity.

 
What’s Next: Lukasz Thieme, a financial planner and partner at Waypoint Financial, wrote on Substack that Berkshire will benefit from a $1 billion upgrade to an OxyChem plant in Texas due to be completed this year that could add $300 million to annual Ebitda off an estimated 2025 base of $1.2 billion of Ebitda.