Occidental Petroleum owns a power plant in Taft, La., that feeds an OXY chemical plant next door. Leftover power is sold on the local grid, which Berkshire Hathaway Energy plants also feed.
The Federal Energy Regulatory Commission ruled that since OXY's plant accounts for just 0.48% of the capacity connected to the region's grid, a combination with Berkshire "will not have an adverse effect on competition" in the local electricity market.
Warren Buffett's Berkshire had to ask, though, before beefing up its 20% stake to as much as half of OXY's shares. Now the market has gotten a rare glimpse of what the famous investor has up his sleeve.
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