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Is Warren Buffett interested in acquiring Occidental Petroleum?

On Friday, Warren Buffett’s Berkshire Hathaway received regulatory approval allowing them to buy 50% of oil giant Occidental Petroleum.

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After the news, the stock price of Occidental Petroleum was up by 10%.

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The share price is up by more than 145% in 2022.

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Berkshire filed an application on 11th July with the Federal Energy Regulatory Commission.

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Pic credit: Photo courtesy of FERC
The application was for approval to allow them to buy more of the oil company’s common stock.

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Berkshire currently owns 188.5 million Occidental Petroleum shares, which is a 20.2% position.

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Pic credit: bankrate
Berkshire also owns $10 billion of Occidental preferred stock and has warrants to buy another 83.9 million common shares at $59.62 each.

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Pic credit: reinsurancene.ws
If the warrants are exercised, Berkshire’s stake would rise by up to 27%.

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Warren Buffett decided to invest in the company after reading through Occidental’s annual report.

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The annual report helped him gain confidence in the company’s leadership and growth story.

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With retail investors following Buffett’s bet on Occidental and the company benefiting from the surging oil price, the stock has been the best-performing stock in the S&P 500.

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