Berkshire Hathaway buys Occidental Petroleum shares worth about $588.7 million. According to a document submitted to the United States Securities and Exchange Commission on Wednesday, Berkshire Hathaway (BRKa.N) has bought approximately $588.7 million shares of Occidental Petroleum (OXY.N) this week. The acquisition was for almost 10.5 million shares.
Thanks to these acquisitions, Berkshire’s share of Occidental now stands at around 27%. Furthermore, the business possesses preferred shares and rights to purchase an additional 83.8 million Occidental shares for $4.7 billion, equivalent to $56.62 per share.
Occidental acquired the shares and warrants as part of a transaction that assisted the company in being able to fund its acquisition of Anadarko Petroleum in 2019. If the warrants were executed, Berkshire’s total ownership would increase to 33 percent.
The closing price of Occidental on Wednesday was $57.22.
In its most recent purchase of Occidental shares, which took place on October 25th, Berkshire purchased a 25.8% holding equivalent to nearly $14.4 billion.
Berkshire owns dozens of enterprises, some of which are energy operations, the BNSF railroad, and Geico auto insurance. Additionally, Berkshire owns hundreds of billions of dollars worth of equities, including Apple (AAPL.O).
Berkshire Hathaway’s substantial investment in Occidental Petroleum marks a pivotal moment in the energy industry. This strategic move highlights confidence in the sector’s potential growth and signifies a significant shift in market dynamics and investor sentiment. As these developments unfold, the synergy between these industry giants is poised to reshape the energy landscape, profoundly impacting the market for years to come.
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