Berkshire Hathaway is acquiring Occidental Petroleum’s chemical division for $9.7 billion, potentially marking Warren Buffett’s last major deal. Vice Chair Greg Abel will take over as CEO in January, but Buffett will remain chairman. Berkshire’s cash reserves have grown due to high acquisition prices driven by hedge funds.

The OxyChem deal adds to Berkshire’s portfolio but won’t significantly impact its bottom line. OxyChem produces various chemicals for different industries and will operate as a subsidiary under Berkshire. Analysts are eager to see how Abel’s leadership differs and what new deals he can secure.

Occidental plans to use $6.5 billion from the deal to reduce debt after selling assets to pay down $7.5 billion. Berkshire holds over 28% of Occidental’s stock and has warrants for more shares. Buffett has no plans to sell the stake and will retain preferred shares received in 2019.

The deal is expected to close in the fourth quarter of this year. Buffett’s conglomerate holds a diverse range of companies and stocks worth over $250 billion, including major stakes in Apple and Coca-Cola. The acquisition aligns with Berkshire’s strategy of investing in strong operating assets.

Read more at Yahoo Finance: Berkshire Hathaway to pay $9.7 billion for OxyChem, potentially Warren Buffett’s last big deal