Greg Abel's 2 Big Acquisitions This Year Cost Berkshire Hathaway About $16 Billion, Less Than 5% of Its Cash Pile
Yahoo Finance ·
Since taking over from Warren Buffett as CEO of Berkshire Hathaway ( BRKA +0.56% ) ( BRKB +0.58% ) , Greg Abel has completed two major acquisitions, but they barely made a dent in its cash pile. Between the two transactions, Berkshire spent $16.5 billion in cash, or around 4.5% of its reported Q2 2026 cash balance of $365.5 billion. Only time will tell whether Berkshire, under Abel's watch, will ramp up its acquisition activity, but this year's pair of transactions may give us insight into Abel's likely approach in the years ahead. Greg Abel, CEO of Berkshire Hathaway. Image source: Getty Images. First, in January, Berkshire completed its $9.7 billion acquisition of OxyChem, formerly the petrochemical division of Occidental Petroleum , of which Berkshire is a major shareholder. Analysts believed Berkshire acquired the company at a low valuation, but as the deal helped Occidental's deleveraging efforts, it may bode well for Occidental shares in the long term. Then, in May, Taylor Morrison agreed to Berkshire's $72.50-per-share offer to acquire the homebuilder. Berkshire paid a modest 24% takeover premium to acquire the publicly traded company. When the deal closed in July, a Taylor Morrison press release announcing the event noted that Berkshire acquired the outstanding stock for $6.8 billion, assuming an additional $1.7 billion in outstanding debt. Since closing the Taylor Morrison deal, Berkshire has yet to make another acquisition offer, but beyond indicating the volume of acquisitions it could pursue in the future, these two transactions also provide insight into the types of deals it will likely pursue under Abel's leadership.
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