Berkshire Hathaway acquires $588.7 million worth of Occidental Petroleum shares

In a recent development, Berkshire Hathaway, one of the world’s largest holding companies, acquired nearly 10.5 million shares of Occidental Petroleum. This huge acquisition comes after Occidental Petroleum acquired CrownRock LP on Tuesday, 12 December 2023. The investment pumped in by Berkshire Hathaway amounts to $588.7 million. This report of the acquisition surfaced through a filing with the U.S. Securities and Exchange Commission on Wednesday, 13 December 2023.

The recent acquisitions have propelled Berkshire Hathaway’s ownership of Occidental to about 27%. Notably, the conglomerate also holds preferred shares and warrants that enabled it to acquire an additional 83.8 million Occidental shares for $4.7 billion, valuing each share at $56.62. These shares and warrants were part of a deal that played a crucial role in financing Occidental’s acquisition of Anadarko Petroleum in 2019. If exercised, the warrants would escalate Berkshire’s total ownership to 33%.

On Wednesday, 13 December 2023, the closing price for Occidental stood at $57.22. This move follows Berkshire’s earlier investment on 25 October 2023, where it acquired a 25.8% stake, amounting to approximately $14.4 billion.

Berkshire Hathaway, renowned for its diverse portfolio, encompasses numerous businesses, including various energy operations, the BNSF railroad, and Geico car insurance. Additionally, the conglomerate manages a substantial stock portfolio, featuring investments in prominent companies such as Apple.