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Berkshire Hathaway Energy said it agreed to buy reorganized
Energy Future Holdings Corp (EFH), Dallas-based Oncor's bankrupt
parent, for $9 billion in cash.
The deal is a bold bet by Buffett that he could win approval for
the acquisition from Texas regulators, after they blocked two
earlier attempts to sell Oncor, one of the largest U.S. power
transmission networks, to other companies.
"By joining forces with Berkshire Hathaway Energy, we will gain
access to additional operational and financial resources as we
continue to position Oncor to support the evolving energy needs
of our state," said Oncor Chief Executive Bob Shapard.
Texas regulators in May said they remained opposed to NextEra
Energy Inc's proposed $18 billion acquisition of Oncor, a deal
they said was not in the public interest.
The Berkshire Hathaway deal also represents a return to a
previously soured investment for Buffett, who in 2013 lost $873
million on a $2 billion bond investment in EFH.
Shapard will assume the role of executive chairman, while Allen
Nye will become Oncor's new CEO, the company said in a
statement. Nye serves as general counsel for the company and the
succession was announced earlier.
The transaction is expected to close in the fourth quarter of
2017.
Reuters reported on Thursday Berkshire Hathaway Energy was
nearing a deal to buy Oncor.
(Reporting by Kanishka Singh and Subrat Patnaik in Bengaluru;
Editing by Amrutha Gayathri and Gopakumar Warrier)
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