Berkshire Hathaway Energy, a subsidiary of Warren Buffett’s Berkshire Hathaway Inc. announced a merger agreement with Energy Future Holdings Corp. in a nearly $11 billion deal.
It means Berhshire Hathaway Energy will acquired reorganized EFH which will also result in the acquisition of Oncor, the energy delivery company serving 10 million customers in Texas.
It is an all-cash consideration of $9 billion for reorganized EFH and implies an equity value of nearly $11.25 billion for 100% of Oncor. The merger is expected to be completed in the fourth quarter of 2017.
Oncor is headquartered in Dallas and is a regulated electric transmission and distribution service provider. It has more than 3,700 employees as well as nearly 122,000 miles of lines and more than 3.4 million meters across Texas.
The multi-billion dollar merger resulted in further expansion of Berkshire Hathaway holdings in Texas. The company has numerous other headquarters there including BNSF Railway; Acme Brick; Justin Brands, Inc.; McLane Company; Berkshire Hathaway Automotove; Star Furniture; TTI; Charter Brokerage; LiquidPower Specialty Products; and Allie Beth Allman and Associates.energy grid even stronger and more reliable.”