LONDON (ShareCast) - (Sharecast News) - American holding company Berkshire Hathaway on Thursday announced that it is to purchase Occidental Petroleum's chemical business, OxyChem, for $9.7bn in its biggest acquisition in three years.
"Berkshire is acquiring a robust portfolio of operating assets, supported by an accomplished team," said Greg Abel, the vice chair of non-insurance operations at Berkshire.

"We look forward to welcoming OxyChem as an operating subsidiary within Berkshire."

Warren Buffett's conglomerate, which already owns a diverse range of businesses across many sectors, including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services and retailing, is already the largest shareholder in Occidental.

In a statement, Occidental said it would use $6.5bn of the proceeds to reduce debt.

Occidental shares were down 5.5% at $45.12 by 1017 ET, while Berkshire Hathaway fell 0.4% to $496.33.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE