The US electric utility Berkshire Hathaway Energy (BHE) will acquire the Texas-based power distribution Oncor Electric for US$11.25bn, of which US$9bn in cash for the purchase of Energy Future Holdings Corp (EFH), Dallas-based Oncor's parent company. The sale will be part of EFH’s restructuring plan to exit bankruptcy.
The transaction is subject to closing conditions, including the required state, federal and bankruptcy court approvals. If approved, it is expected to be completed in the fourth quarter of 2017. However, the deal may still fail since the Public Utility Commission (PUC) of Texas already denied twice the approval of a former transaction in March and June 2017. The US utility NextEra Energy already proposed to buy a 80% stake in Oncor from EFH for US$18.4bn but the PUC refused, arguing the deal was not in the public interest.
Oncor is Texas' largest transmission operator and serves 10 million customers in the state. Berkshire Hathaway Energy is the new name of the Iowa-based power utility MidAmerican Energy Holding (acquired by Warren Buffet in 2000), which has expanded in the central and western United States and is active in power generation, transportation and supply.
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