Buffett's Berkshire Hathaway Authorized to Buy 50% Occidental Stake -FERC Order

Reuters2022-08-20

A U.S. regulator has authorized Berkshire Hathaway Inc, the company controlled by billionaire Warren Buffett, to buy up to 50% of the common stock of oil company Occidental Petroleum Corp.

In an order made public on Friday, the Federal Energy Regulatory Commission (FERC) said that authorization was "consistent with the public interest."

Occidental shares jumped 9.9% to $71.29 on Friday.

Neither Berkshire nor Occidental immediately responded to requests for comment.

Occidental's share price has more than doubled this year, benefiting from rising oil prices following Feb. 24 Ukraine war.

Berkshire began buying Occidental shares around the time the invasion began, and by Aug. 8 had accumulated a 20.2% stake.

It sought FERC authorization for a maximum 50% stake on July 11, saying it would not hurt competition, undermine regulators' authority, or cause consumers to pay more.

Berkshire also owns $10 billion of Occidental preferred stock, which helped finance the 2019 purchase of Anadarko Petroleum Corp, and has warrants to buy another 83.9 million common shares for $5 billion.

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Comments

WJ77
2022-08-22
WJ77
Ok
NewInvest
2022-08-21
NewInvest
[Like]
PearlynCSY
2022-08-21
PearlynCSY
Warren Buffett gets permission to buy up to half of Occidental Petroleum, boosting the shares. Warren Buffett’s Berkshire Hathaway on Friday received regulatory approval to purchase up to 50% of oil giant Occidental Petroleum.Shares of Occidental jumped10% on the news to close at $71.29 apiece, pushing their 2022 gains to more than 145%.The conglomerate has already increased its Occidental stake drastically this year. Berkshire currently owns 188.5 million shares of Occidental, equal to a 20.2% position. It surpassed a key threshold where Berkshire could record some of the oil company’s earnings with its own, potentially adding billions of dollars in profit.Friday’s news fueled speculation that Buffett will be interested in acquiring the whole company eventually after ramping up his stake
Kingcat
2022-08-21
Kingcat
Thanks for sharing [Like]
LEESIMON
2022-08-20
LEESIMON
‌[愛心] ‌Nice
magnumao
2022-08-20
magnumao
H