Home / Financial News / Warren Buffett keeps the faith in oilsands as Berkshire Hathaway Inc raises stake in Suncor Energy Inc
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Warren Buffett keeps the faith in oilsands as Berkshire Hathaway Inc raises stake in Suncor Energy Inc

Warren Buffett has kept the faith in the oilsands at a time when investor sentiment towards the sector has soured.

One of the world’s savviest investors has kept the faith in the oilsands as investor sentiment toward the sector is souring.

Billionaire Warren Buffett’s Berkshire Hatahway Inc. revealed in its most recent filings that it has purchased an additional 7.6 million shares in Suncor Energy Inc.

Berkshire has been boosting its stake in Canada’s largest integrated oil and gas company since it first bought 17.8 million shares in 2013 in a deal valued at US$500 million at the time. The current value of Berkshire’s additional shares is roughly $283 million.

Berkshire now owns 30 million Suncor shares, making it the ninth-largest shareholder in the company at the end of September, with an investment of $1.1 billion based on the company’s share price of $36.93 each.

Suncor now comprises 0.63 per cent of Berkshire’s portfolio, and is its 20th biggest holding.

Suncor is in the midst of a hostile takeover bid of Canadian Oil Sands Ltd. Suncor has offered to buy COS for $4.7 billion in an all-share deal, which has been spurned by COS management and its board.

Canadian Oil Sands management announced Monday that it would release its capital spending plans and annual budget for the Syncrude joint-venture project on Dec. 1 — three days before Suncor’s 60-day offer for the company expires.

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