World Markets

Berkshire Hathaway takes new stake in Canada's Suncor Energy

Reuters

TORONTO/WINNIPEG, Manitoba, Feb 14 () - Warren Buffett'sBerkshire Hathaway Inc said on Thursday it had taken a fresh stake in Suncor Energy Inc for the second time in about six years, sending the U.S.-listed shares of the energy major up 4 percent in after-market trading.

Suncor, Canada's biggest oil and gas company, is considered one of the safest Canadian energy companies to invest in, given its integrated structure and diversified business mix.

Berkshire's investment puts the Buffett stamp on Suncor and could be seen as a positive for the Canadian energy sector. The move comes at a time when global investors have been pulling away from Canada because of its carbon-intensive oil sands and struggle to approve pipelines.

Ahead of Thursday's news, Suncor's shares had shed 17.3 percent in the last six months, due in part to Alberta's decision to force mandatory production cuts last year.

The new position comes more than two years after Berkshire sold its stake in Suncor. Berkshire took a position in Suncor in 2013 and exited its stake in 2016.


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