Business

Warren Buffett Says Berkshire Hathaway Won’t Take Full Control Of Occidental Petroleum


Warren Buffett on oil: We like Occidental's location in the Permian Basin

Follow our live coverage of Warren Buffett at the Berkshire Hathaway meeting.

OMAHA, Neb. — Warren Buffett said on Saturday that Berkshire Hathaway does not plan to take full control Random oil and gasan oil giant that has accumulated a 20% stake in the north.

“There’s speculation that we’re buying control, we’re not buying control,” the ‘Oracle of Omaha’ said at of Berkshire annual shareholder meeting. “We wouldn’t know what to do with it.”

In August of last year, Berkshire receives regulatory approval to buy up to 50% shares. Since then, Buffett has steadily added to his bet, including this year, increasing the group’s stake in the Houston-based energy producer to 23.5%. The move sparked speculation that the 92-year-old investor could take over the entire company.

“We’re not making any offers to control Occidental, but we love the stakes we have,” Buffett said. “We may or may not own more in the future, but we certainly have a guarantee of what we received in the original deal for a very substantial amount of stock of about $59 a year. stocks, and warranties are in force for a long time, and I’m glad we have them.”

Berkshire owns $10 billion of Occidental preferred stock and has warrants to purchase another 83.9 million shares of common stock for $5 billion, or $59.62 per share. Warrants purchased as part of the company transaction 2019 that helped financially Occidental buys Anadarko.

Shares of Occidental are down about 3% this year, after more than doubling in 2022. The stock was the best performer in the S&P 500 last year.

— Sarah Min of CNBC contributed reporting.

goznews

Goz News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably.

Related Articles

Back to top button