Warren Buffett’s Berkshire Hathaway on Friday received regulatory approval to buy up to 50% of oil behemoth Occidental Petroleum.
Shares of Occidental soared 10% following the news to close at $71.29 apiece, making their 2022 gains more than 145%.
On July 11, Berkshire filed an application with the Federal Energy Regulatory Commission to purchase more of the oil company’s common stock in secondary market transactions. The conglomerate said that a maximum 50% stake wouldn’t hurt competition or diminish regulatory authority.
Carlos Clay, acting director of the division of electric power regulation, granted the permission Friday, saying authorization was “consistent with the public interest.”
The conglomerate has already pushed its Occidental stake to high milestones this year. Berkshire currently owns 188.5 million shares of Occidental, representing a 20.2% position.
Berkshire is also the owner of $10 billion of Occidental preferred stock, and has warrants to buy another 83.9 million common shares for $5 billion, or $59.62 each.