Elliott Management (EM) has proposed US$18.5bn for the acquisition of the Texas-based power distribution Oncor Electric, of which US$9bn in cash for the purchase of Energy Future Holdings Corp (EFH), Dallas-based Oncor's parent company. This bid overtook the US$11.25bn proposal made earlier in July 2017 by Berkshire Hathaway Energy (BHE).
In any case, the bids have to be approved by the Texas Public Utility Commission (PUC), which 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. Besides, the bids from BHE and EM are both below the $18.4bn offered by NextEra Energy.
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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