US energy group Sempra Energy has reached an agreement to acquire Energy Future Holding (EFH) and its 80% stake in Oncor, the operator of the largest electric transmission and distribution system in Texas (United States) with 10 million customers in the state. The enterprise value of the transaction is approximately US$18.8bn, including the assumption of Oncor's debt and US$9.45bn in cash. In addition, Sempra Energy has committed to support Oncor's plan to invest US$7.5bn of capital over a five-year period to expand and reinforce its transmission and distribution network.
Energy Future Holdings Corp (EFH), the former TXU Corporation, is the parent company of Oncor, Luminant and Texas Competitive Electric Holdings and filed for bankruptcy in April 2014. The group had already received several bids, from US utility NextEra Energy for US$18.4bn (that deal was rejected by the Texas Public Utility Commission, arguing the deal was not in the public interest), from Berkshire Hathaway Energy (BHE) for US$11.25bn in June 2017 and from Elliott Management (EM) for US$18.5bn in July 2017.
The transaction is subject to customary closing conditions, including the approval of the Public Utility Commission of Texas, U.S. Bankruptcy Court of Delaware, Federal Energy Regulatory Commission and the U.S. Department of Justice under the Hart-Scott-Rodino Act. It is expected to be completed in the first half of 2018.