Home/ Companies / News/  Warren Buffett's Berkshire buys more Occidental shares, raises stake to 16.4%

Warren Buffett's Berkshire Hathaway plowed another $44 million into Occidental Petroleum, boosting its bet on the oil-and-gas firm to about $9 billion. 

With the purchase of another 794,389 shares of Occidental Petroleum Corp for about $55.40 each, the conglomerate now holds nearly 16.4% stake in the Houston, Texas-based oil firm.

In a regulatory filing, Berkshire said the purchases were made in multiple transactions and cost about $44 million. The share purchases come nearly a week after Berkshire bought 9.6 million Occidental shares.

Berkshire, the largest individual shareholder in Occidental, now owns about 153.5 million shares worth about $9.04 billion, based on Occidental's Monday close.

Berkshire piled about $7 billion into Occidental between February 28 and March 16, and has invested almost $1 billion more in the past two months.

Occidental's share prices are currently up nearly 90% this year, as the company benefited from Berkshire's purchases and an oil price surge following Russia's invasion of Ukraine.

The company also owns options to buy another 83.9 million Occidental shares, which if exercised, would bring its stake to more than 25%.

Berkshire has been on a spending spree this year.

It spent $51.1 billion on equities in the first quarter, including an increased $25.9 billion stake in oil company Chevron Corp.

Berkshire might even try to acquire Occidental once the company slashes its debt pile and its credit profile improves, Neal Dingamm, a managing director at Truist Securities, said in a recent note.

Berkshire has also in 2022 announced large investments in video game maker Activision Blizzard and computer and printer maker HP, and a planned $11.6 billion takeover of insurance company Alleghany Corp.

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Updated: 28 Jun 2022, 07:32 PM IST
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