Warren Buffett, photo: Xinhua / Zuma Press / Profimedia
The Berkshire Hathaway investment company owned by Warren Buffett is approaching an agreement for the purchase of the Oxychem Petrochemical Division from Western Petroleum for about $ 10 billion, CNBC reports.
The possible transaction, revealed for the first time by The Wall Street Journal on Tuesday, could be the largest acquisition of Berkshire in 2022, when he bought Alleghany insurer for $ 11.6 billion. That transaction was announced in March 2022 and completed in October 2022.
Berkshire is currently having a $ 344 billion record reserve.
Buffett, 95, will give up the position of CEO of Berkshire at the end of 2025, but will remain president. His successor, Greg Abel, who was the CEO of Berkshire Hathaway Energy, is known for his solid expertise in the energy industry.
Western Petroleum actions, a comapie based in Houston, decreased 1.8% on Tuesday, despite the WSJ news that the transaction could be completed in a few days.
Berkshire Hathaway had Western shares worth over $ 11 billion, representing a 28.2%stake. Buffett has previously said that he does not intend to take over the total control of the oil company, founded by the well -known businessman Armand Hammer.
In 2019, Buffett contributed to the financing of Anadarko Petroleum by Western through a commitment of $ 10 billion, receiving preferential actions and options to buy common shares.
The billionaire investor began to buy joint western actions on the free market in early 2022, after reading the transcript of the financial results of the oil company. He took advantage of the increased volatility during the Covid Pandemic to purchase the shares at a low price.
