nsucurrent.com February 22, 2018

Berkshire Hathaway will acquire Oncor Electric Delivery Co. for $9 billion

08 July 2017, 12:31 | Ricardo Garza

Berkshire Hathaway CEO Warren Buffett waits to play table tennis during the Berkshire Hathaway annual meeting weekend in Omaha Nebraska U

Berkshire Hathaway CEO Warren Buffett waits to play table tennis during the Berkshire Hathaway annual meeting weekend in Omaha Nebraska U

After two companies failed to pass muster with regulators, Berkshire Hathaway Energy is taking a stab, announcing a $9 billion all-cash deal for Oncor's parent company, Energy Future Holdings.

Berkshire Hathaway Inc.'s energy business is nearing a deal to buy Oncor, one of the country's largest electricity transmissions businesses, according to people familiar with the matter. The utility serves more than 10 million Texas residents in more than 400 cities and 90 counties and manages more than 121,000 miles of power lines.

Buffett and Berkshire Hathaway must now deal with the Texas Public Utility Commission which has already shot down takeover bids from NextEra Energy Inc. this year and privately held Hunt Consolidated Inc.in 2016, Reuters said.

This latest savvy acquisition is the biggest by Berkshire since last year's purchase of Precision Castparts for $32 billion, the company's largest ever. Including debt, the deal has an enterprise value of roughly $18bn, The Wall Street Journal reports.

The energy unit of Warren Buffett's Berkshire Hathaway Inc.

Energy Future Holdings was known as TXU until a historic $45 billion leveraged buyout by KKR, Goldman Sachs and TPG Capital in 2007.

A buyout attempt past year backed by the Ray Hunt family of Dallas also was reported to have failed.

Berkshire Hathaway Energy and Oncor are not providing comments at this time.

"We are excited to begin the regulatory approval process as this transaction has significant support across our key stakeholders", Nye said in a statement.

The transaction is subject to closing conditions, including the receipt of required state, federal and bankruptcy court approvals.

Analyst's Analysis on Berkshire Hathaway Inc.

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