Berkshire Hathaway’s vice chairman Greg Abel sold its 1% stake in the company’s energy unit. This was revealed in Berkshire’s quarterly report release over the weekend.
According to the company, Abel was bought out in June for a figure of $870 million. The move was made according to the agreement between Berkshire and the family of late billionaire Walter Scott. Berkshire now owns 92% of its energy unit, while Scott’s heirs own the remaining 8%.
Berkshire Hathaway Energy has subsidiaries and investments in a wide range of energy businesses but also real estate. The list of companies it owns includes MidAmerican Energy Company, PacifiCorp, NV Energy, and HomeServices of America.
According to industry insiders, Abel liquidating its stake in Berkshire Hathaway Energy could mean that Scott’s family is thinking of doing the same. Scot, who passed last year, was a childhood friend of Berkshire CEO Warren Buffet. He was involved with the company in sever roles, including sitting on its board of directors.
Greg Abel joined Berkshire Hathaway Energy in 1992 and was named its president in 1998. He served in the role until 2018 while also being the unit’s CEO between 2008 and 2018. Abel is currently designated to succeed Buffet as Berkshire CEO.