Warren Buffett accumulates larger stake in oil company Occidental

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Berkshire Hathaway becomes the biggest shareholder, sparking market speculation of a full buyout

Equipment used at Occidental Petroleum in Hobbs, New Mexico, the US, May 3 2017. Picture: ERNEST SCHEYDER/REUTERS

Berkshire paid about $582m for the shares, which it bought between Wednesday and Friday, according to a Friday night filing with the US Securities and Exchange Commission. Its stake is about 60% larger than that of Vanguard, the next largest shareholder, according to Refinitiv data.Occidental’s share price has more than doubled this year, benefiting from Berkshire’s purchases as well as rising oil prices after Russia’s invasion of Ukraine.

In a June 23 research report, Truist Securities analyst Neal Dingmann saw a “good chance” of a Berkshire takeover once Occidental became an investment-grade credit, saying a purchase would help diversify Berkshire’s energy portfolio.

 

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