(Washington) Berkshire Hathaway, the investment company of Warren Buffett, has obtained the green light from the American regulator to acquire up to 50% of the oil company Occidental Petroleum, according to a regulatory document published on Friday.
Posted at 5:48 p.m.
Securities of the oil group Occidental Petroleum Corporation jumped 9.88%, to close at 71.29 dollars on Wall Street. Those of Berkshire Hathaway dropped 2.30% to $297.28.
The Federal Energy Regulatory Commission (FERC) said on Friday that Warren Buffett’s investment company had requested approval on July 11 to acquire up to 50% of the company, which is one of the largest producers of oil in the United States, with significant petrochemical and electricity production activities.
Warren Buffett began inflating his stake in Occidental Petroleum after Russia invaded Ukraine and currently owns 18.72% of the oil company’s common stock, according to the FERC filing.
The regulator of the sector considered that the transaction “(would) not have a detrimental effect on competition” nor “on the wholesale prices of electrical energy”.
Occidental Petroleum is the fifth largest American capitalization in the oil sector and weighs 66 billion dollars.
Since the first announcement of the entry of Berkshire Hathaway in the capital, at the beginning of March, the title has climbed 50%.