Oncor To Join Warren Buffett's Berkshire Hathaway Energy
DALLAS (AP) Berkshire Hathaway Energy, a subsidiary of Warren Buffett's Berkshire Hathaway Inc., announced today it has executed a definitive merger agreement with Energy Future Holdings Corp. (EFH).
Berkshire Hathaway Energy will acquire reorganized EFH, which will ultimately result in the acquisition of Oncor, an energy delivery company serving approximately 10 million Texans.
"Oncor is an excellent fit for Berkshire Hathaway, and we are pleased to make another long-term investment in Texas – when we invest in Texas, we invest big!" said Warren Buffett, chairman of Berkshire Hathaway. "Oncor is a great company with similar values and outstanding assets."
The all-cash consideration for reorganized EFH is $9 billion implying an equity value of approximately $11.25 billion for 100% of Oncor and is subject to closing conditions, including the receipt of required state, federal and bankruptcy court approvals. The transaction is currently expected to be completed in the fourth quarter of 2017.
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