Berkshire Hathaway Energy is close to a deal for Oncor, report says

Jul 08, 2017, 00:29
Berkshire Hathaway Energy is close to a deal for Oncor, report says

If the all-cash purchase wins approval from federal and state regulators and a bankruptcy judge, Buffett's Berkshire Hathaway Energy unit will assume control of one of the largest US electricity transmission companies.

Berkshire Hathaway, the famed billionaire's multinational conglomerate, unveiled a deal Friday to buy Oncor, whose roughly 120,000 miles of transmission and distribution lines deliver power to more than 3 million homes and businesses in North and West Texas.

Energy Future Holdings, the parent company of Oncor, has spent the past three years in a DE bankruptcy court hammering out its reorganization plan, Forbes noted in February.

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The NextEra deal fell through when Texas regulators blocked the takeover, saying it wouldn't be in the public's interest.

Last year, Berkshire completed the biggest acquisition in its history, a $32.36 billion deal for aviation parts maker Precision Castparts.

Vetr cut shares of Berkshire Hathaway Inc. A buyout attempt previous year backed by the Ray Hunt family of Dallas also faltered.

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Oncor is the largest T&D utility in Texas and the sixth largest in the United States.

Under their agreement, the executive chairman of Oncor will be Bob Shapard, while the CEO will be Allen Nye. Buffett said in a statement. Zacks Investment Research downgraded shares of Berkshire Hathaway from a "hold" rating to a "sell" rating in a research report on Friday, April 28th.

Berkshire Hathaway already has a significant presence in Texas, including four Fort Worth companies: BNSF Railway, Acme Brick, Justin Brands and TTI.

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Berkshire Hathaway expects the deal to close in the final quarter of 2017, provided it can secure state, federal and court approvals.

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