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Warren Buffett, the CEO of famed conglomerate Berkshire Hathaway, has increased his stake in US oil giant Occidental Petroleum. The purchase followed shortly after the company announced the acquisition of sector peer CrownRock.

Berkshire Hathaway is Warren Buffett's investment company, known for its long-term vision as well as above-average performance. Its success gave Buffett the status of "primal investor." When he speaks, people listen.

In the news: Buffett bought more than 10 million shares of Occidental Petroleum through Berkshire Hathaway. He put some $590 million on the table for that. This is according to a filing with the US stock market watchdog SEC.

  • The conglomerate now has a 27 percent stake in the oil giant. The value of that "parcel" of shares amounts to some 13.6 billion euros.
  • Berkshire first invested in Occidental Petroleum in 2019 to finance the $55 billion purchase of Anadarko Petroleum. Since then, the billionaire has increased his stake in the oil company several times .
  • Remember: Buffett was authorized by the regulator FERC (in full Federal Energy Regulatory Commission) to buy up to 50 percent of the shares in 2022.

Acquisition of an industry peer

Details: By increasing his stake in Occidental Petroleum, Buffett appears to be giving his blessing to the acquisition of CrownRock, an unlisted oil producer in Texas.

  • Occidental Petroleum announced early this week that it will acquire its sector peer for $10.8 billion. To finance that acquisition deal, the oil producer will issue $9.1 billion in debt and $1.7 billion in common stock.

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