Berkshire Hathaway Intends to Purchase Up to 50% of Occidental

After months of acquiring Occidental Petroleum Corp. shares, Warren Buffett’s Berkshire Hathaway Inc. received regulatory clearance from the US to purchase up to 50% of the company. The move boosted Occidental’s stock price. According to a document published Friday, Berkshire asked for clearance from the Federal Energy Regulatory Commission on July 11. Carlos D. Clay, the interim head of the commission’s department of electric power regulation for the west, stated in the document, “It is concluded that the proposed transaction is consistent with the public interest and is authorized.” Berkshire has spent the past year buying up Occidental stock to increase its wager on the Houston-based oil business that has already begun to pay off. Berkshire revealed earlier this month that its ownership in Occidental had crossed a critical level, which may result in additional quarterly disclosures and a boost to the company’s profitability. Buffett Praised Hollub’s Management Vicki Hollub, the chief executive officer of Occidental, was pursuing Anadarko Petroleum Corp. in 2019. Buffett supported her efforts by deciding to invest US$10 billion in Occidental at the time, a deal that comprised both preferred shares and warrants. Buffett lauded Hollub’s leadership this year, indicating that the billionaire investor was all-in on Occidental, which fueled anticipation that Berkshire, which has more than US$105 billion in cash at the end of June,...