Berkshire Hathaway invests another $588.7 million in Occidental Petroleum

Berkshire Hathaway revealed its acquisition of approximately 10.5 million shares of Occidental Petroleum this week, according to a recent filing with the US Securities and Exchange Commission on Wednesday. This transaction amounts to a substantial investment of around $588.7 million. This move increases Berkshire's ownership stake in Occidental to approximately 27 per cent.

Berkshire Hathaway not only holds common shares but also possesses preferred shares and warrants allowing the acquisition of an additional 83.8 million Occidental shares for $4.7 billion, at a rate of $56.62 per share. These shares and warrants originated from a deal that facilitated Occidental's financing for its acquisition of Anadarko Petroleum in 2019. If exercised, the warrants would further elevate Berkshire's total ownership to 33 per cent.

As of Wednesday's market close, Occidental Petroleum was valued at $57.22. Berkshire Hathaway's latest purchase follows its acquisition of Occidental shares on October 25, where it secured a 25.8 per cent stake valued at approximately $14.4 billion.

Berkshire Hathaway, renowned for its diverse portfolio including energy operations, the BNSF railroad, and Geico car insurance, holds a significant position in various sectors and boasts a substantial portfolio of stocks, including notable investments in companies like Apple.

(With Reuters inputs)