Buffett's Berkshire to buy Texas power transmitter Oncor

By The Associated Press

Warren Buffett's Berkshire Hathaway is buying the Texas power transmitter Oncor for $9 billion, one of his biggest acquisitions.

In this Monday, May 4, 2015, file photo, Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview with Liz Claman on the Fox Business Network in Omaha, Neb. A subsidiary of Buffett’s Berkshire Hathaway is buying energy delivery company Oncor, which will strengthen its presence in Texas. (AP Photo/Nati Harnik, File)

NEW YORK (AP) — Warren Buffett's Berkshire Hathaway is buying the Texas power transmitter Oncor for $9 billion, one of his biggest acquisitions.

Last year, Berkshire completed its biggest acquisition in its history, a $32.36 billion deal for aviation parts maker Precision Castparts.

Oncor serves about 10 million people and is the biggest regulated utility in Texas. Its parent company, Energy Future Holdings Corp., entered bankruptcy in 2014 facing more than $40 billion in debt after energy prices plunged.

Berkshire Hathaway will acquire a reorganized Energy Future, ultimately leading to the buyout of Oncor, based in Dallas.

It's the third time that that an acquisition attempt has been made for Oncor. In April Texas regulators rejected a proposed $18 billion sale of Oncor to NextEra Energy Inc. That price tag included debt, which may also double the enterprise value of the deal that Buffett is attempting to cobble together.

The regulators failed to accept that the NextEra transaction was in the public interest — a requirement for the deal. A buyout attempt last year backed by the Ray Hunt family of Dallas also faltered.

Berkshire Hathaway already has a significant presence in Texas, which includes headquarters for BNSF Railway Co., Acme Brick Co., Justin Brands Inc., McLane Co., Berkshire Hathaway Automotive, Star Furniture Co., TTI Inc., Charter Brokerage, LiquidPower Specialty Products Inc. and Allie Beth Allman & Associates.

The deal, which requires state, federal and bankruptcy court approval, is targeted to close in the fourth quarter.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Shell Leverages Data to Transform from Reactive to Predictive Operations

This 6-page report describes how Shell engaged in a massive project with OSIsoft to transform the...

Selection, Use, Care and Maintenance of FR Clothing

For industries operating in an inherently dangerous environment, the importance of selecting the ...

Evolution or Revolution: IT / OT convergence means a world of possibilities

The oil and gas industry is experiencing a rapid paradigm shift in regards to digital transformat...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs