Berkshire Hathaway Energy, a subsidiary of Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A), has agreed to acquire Energy Future Holdings Corp. for $9 billion in cash.
The deal will result in the acquisition of Oncor, a regulated electric transmission and distribution service firm that serves 10 million customers across Texas.
“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!” Buffett said in a statement. “Oncor is a great company with similar values and outstanding assets.”
Energy Future filed for bankruptcy protection in 2014. The acquisition, which requires approvals from state, federal and bankruptcy court, is expected to be completed in the fourth quarter of this year.
“By joining forces with Berkshire Hathaway Energy, we will gain access to additional operational and financial resources as we continue to position Oncor to support the evolving energy needs of our state,” Oncor CEO Bob Shapard said.
Upon closing of the transaction, Shapard will become executive chairman of the Oncor’s board, while Allen Nye will take the position of CEO of Oncor.
Berkshire Hathaway Energy owns electricity and natural gas utilities across the United States.
Meanwhile, shares of Berkshire Hathaway Inc. (NYSE:BRK.A) are up over 4% so far this year. During the last 12 months, the company’s share price has increased by more than 18%.