Thomson Reuters
Berkshire Hathaway Energy said Friday that it agreed to acquire Energy Future Holdings for $ 9 billion in cash, a purchase that would eventually hand it the electric-utility giant Oncor.
The deal comes after Energy Future, Oncor’s parent company, filed for bankruptcy protection in 2014 amid the sector’s downturn. Oncor serves electricity to 10 million customers across Texas.
Berkshire Hathaway Energy owns electricity and natural-gas utilities across the US, and this deal would beef up its portfolio.
Berkshire’s purchase values Oncor at $ 11.25 billion, less than the $ 18.4 billion that NextEra Energy Resources had agreed to pay before that deal was halted by regulators.
“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,” Warren Buffett, chairman of Berkshire Hathaway, said in a statement.
The companies expect that the deal to close in the fourth quarter of 2017.
Oncor earned $ 935 million in operating revenues and $ 73 million in net income in the quarter ended March 31.
In late June, Berkshire invested $ 377 million in Store Capital, a real-estate investment trust.
NOW WATCH: We ate at Warren Buffett’s favorite Omaha steakhouse — and got a peek into his private dining room
