Printer Friendly

Berkshire Hathaway Energy Touts Stakeholder Support for Oncor Bid.

MANews-(C)2009-2017

26 July 2017 - The International Brotherhood of Electrical Workers Local 69 and Targa Pipeline Mid-Continent WestTex LLC/Targa Midstream Services LLC have expressed support for the proposed acquisition of Texas, US-based energy delivery company Oncor Electric Delivery Co LLC (Oncor) by US-based Berkshire Hathaway Energy, a subsidiary of Warren Buffett's Berkshire Hathaway Inc., the company said on Wednesday.

This deal was announced in early July.

This announcement brings the total number of Texas stakeholder groups that support Berkshire Hathaway Energy's proposed acquisition of Oncor to ten.

According to the company, these include Public Utility Commission Staff; Cities Served by Oncor; Texas Industrial Energy Consumers; Office of Public Utility Counsel; TXU Energy; NRG Energy; the Texas Energy Association for Marketers ; the Alliance for Retail Markets ; IBEW Local 69; and Targa Pipeline Mid-Continent WestTex LLC/Targa Midstream Services LLC.

TXU Energy and NRG Energy represent two of the largest retail electric providers in Texas, with TEAM and ARM representing dozens of Texas electric market participants. ARM participating members include Champion Energy Services, LLC; Direct Energy, L.P.; NRG Retail Companies; and TXU Energy Retail Co LLC.

Under the deal, Berkshire Hathaway Energy will acquire reorganized EFH, which will ultimately result in the acquisition of Oncor, an energy delivery company serving approximately 10m Texans.

Berkshire Hathaway Inc. already has a presence in Texas with multiple headquarters in the state, including BNSF Railway Co; Acme Brick Co; Justin Brands, Inc.; McLane company, Inc.; Berkshire Hathaway Automotive; Star Furniture Co; TTI, Inc.; Charter Brokerage; LiquidPower Specialty Products Inc.; and Allie Beth Allman and Associates.

The all-cash consideration for reorganized EFH is USD 9bn implying an equity value of approximately USD 11.25bn for 100% of Oncor and is subject to closing conditions, including the receipt of required state, federal and bankruptcy court approvals.

This transaction is currently expected to be completed in 4Q17.

Effective upon closing of the transaction, Bob Shapard will assume the role of executive chairman of the Oncor Board, and Allen Nye will assume the role of CEO of Oncor.

Headquartered in Dallas, Texas, Oncor is a regulated electric transmission and distribution service provider that serves 10m customers across Texas.

Berkshire Hathaway Energy owns a portfolio of locally managed businesses and had USD 85bn of assets as of 31 December 2016.

These businesses deliver service to more than 11.6m electric and gas customers and end-users around the world.

Country: USA

Sector: Utilities

Target: Energy Future Holdings Corp

Buyer: Berkshire Hathaway Energy

Vendor:

Deal size in USD: 11.25bn

Type: Corporate Acquisition

Financing: Cash

Status: Agreed

Buyer advisor: , ,

Comment:

COPYRIGHT 2017 Normans Media Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:M & A Navigator
Geographic Code:1U7TX
Date:Jul 26, 2017
Words:430
Previous Article:Caesars Entertainment, Caesars Acquisition Win Shareholder Nods for Merger.
Next Article:UK Competition and Markets Authority Clears Open GI- Transactor Tie-Up.
Topics:

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters