Occidental Weighs $10 Billion Sale of Chemical Arm OxyChem
The main purpose for facilitating the sales of Oxychem is to reduce Occidental's $24 billion debt burden.
Occidental Weighs $10 Billion Sale of Chemical Arm OxyChem
Occidental Petroleum is reportedly in negotiations to sell its subsidiary chemical arm, OxyChem, in a deal worth at least $10 billion as part of efforts to reduce its $24 billion debt burden. The sale, if it goes through, would be the company’s biggest divestment and would create one of the world’s largest standalone petrochemical companies. According to the report, the deal could be announced within the coming weeks—unless there is a last-minute change in decision. It's worth noting that this is not the first divestment the Warren Buffett-backed company has done. According to Bloomberg, Occidental has been divesting assets in an effort to reduce debt. Last year, OxyChem generated about $5 billion in revenue. But that's not enough to cover Occidental's debt which currently stands at around $24 billion—much of which stems from its past acquisitions (including the $55 billion Anadarko deal in 2019 and a $13 billion shale acquisition in 2023). In the past year, the Houston-based…
