Occidental Petroleum in talks to sell OxyChem chemical unit for at least $10 billion
Occidental Petroleum has announced that it is in advanced talks to sell its chemical division, OxyChem, for at least $10 billion. The announcement sent Occidental's stock rising over 1% in premarket trading. The potential sale is expected to accelerate the company’s efforts to reduce debt and improve shareholder returns, according to Barclays. An announcement could come in the next few weeks, marking a strategic shift for Occidental as it focuses more on financial strengthening and streamlining operations.
OxyChem is a major global producer of chlor-alkali, PVC and caustic potash, with strong cash flow and links to Occidental’s Direct Air Capture initiatives. Despite its operational value—evident in Barclays’ projected EBITDA growth from $1.24 billion in 2025 to $1.46 billion in 2027—Occidental appears willing to divest the unit to boost balance sheet health. The $10 billion price tag reflects a roughly 7x EBITDA multiple for 2026–2027, higher than the company’s current valuation multiples. Even after taxes, the deal is expected to be slightly accretive, further reinforcing positive investor sentiment.
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