A US energy regulator on Friday gave Berkshire Hathaway, the company controlled by billionaire Warren Buffett, permission to buy up to 50% of oil company Occidental Petroleum’s common stock.
Occidental’s share price soared 9.9%, closing up $6.41 at $71.29, after the Federal Energy Regulatory Commission (FERC) said letting Berkshire add to its 20.2% stake was “consistent with the public interest.”
Berkshire had applied to increase its stake on July 11, saying it would not hurt competition, undermine regulatory authority, or boost costs for consumers. FERC regulates the interstate transmission of electricity, natural gas and oil.
The share price of Houston-based Occidental has more than doubled this year, benefiting from rising oil prices following Russia’s Feb. 24 invasion of Ukraine. Berkshire began buying Occidental shares four days later.
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