By Micah Maidenberg 

Berkshire Hathaway Inc. has agreed to make a $10 billion equity investment in Occidental Petroleum Corp., a bid to help the oil company complete its proposed acquisition of Anadarko Petroleum Corp.

In return for the investment, Berkshire will receive 100,000 shares of preferred stock, according to a statement from Occidental. The preferred stock will generated dividends at 8% a year.

In addition, Bekrshire will receive a warrant to buy up to 80 million shares of Occidental common stock at a price of $62.50 a share.

Shares of Occidental closed Monday at $60.13.

Berkshire couldn't immediately be reached for comment. Berkshire will only follow through on the investment if Occidental is able to enter into and complete its proposed acquisition of Anadarko.

Last week, Houston-based Occidental offered to purchase Anadarko for $38 billion. The bid topped the $33 billion that Chevron Corp. agreed to pay to buy the company.

On Monday, Anadarko said it was considering Occidental's offer, but added its merger agreement with Chevron remained in place. Chevron's deal entitles it to receive a $1 billion breakup fee if Anadarko walks away.

"We are thrilled to have Berkshire Hathaway's financial support of this exciting opportunity," Occidental Chief Executive Officer Vicki Hollub said in prepared remarks.

Monday, a Chevron spokesman said in a statement the company believes its agreement offers Anadarko the best value and most certainty to Anadarko shareholders.

Write to Micah Maidenberg at


(END) Dow Jones Newswires

April 30, 2019 09:43 ET (13:43 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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