Berkshire Hathway commits to $10B investment in Occidental for Anadarko deal

Occidental Petroleum Corporation (OXY) announced that, in connection with the financing of Occidental’s proposal to acquire Anadarko Petroleum Corporation (APC), Berkshire Hathaway (BRK.A) has committed to invest a total of $10B in Occidental. The investment is contingent upon Occidental entering into and completing its proposed acquisition of Anadarko. Berkshire Hathaway will receive 100,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share, together with a warrant to purchase up to 80.0 million shares of Occidental common stock at an exercise price of $62.50 per share. The preferred stock will accrue dividends at 8% per annum. On April 24, Occidental made a proposal to acquire Anadarko for $76.00 per share, comprised of $38.00 in cash and 0.6094 shares of Occidental common stock per Anadarko share. On April 29, Anadarko announced that its Board of Directors had determined that the proposal from Occidental could reasonably be expected to result in a Superior Proposal under its existing merger agreement and that it would engage with Occidental. “We have long believed that Occidental is uniquely positioned to generate compelling value from Anadarko’s highly complementary asset portfolio. We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity,” said Vicki Hollub, President and CEO of Occidental. “We look forward to engaging with Anadarko’s Board of Directors to deliver this superior transaction to our respective shareholders.”

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