Warren Buffett's Berkshire Hathaway Energy announced that it plans to acquire Energy Future Holdings Corp. (EFH). The purchase would result in the Texas’ largest electric-utility company Oncor Electric Delivery Co. which serves electricity to about 10 million customers.
Warren Buffet will acquire EFH for $9 billion in cash. Berkshire's purchase values Oncor at $11.25 billion. The deal will be completed in the fourth quarter of 2017.
Two other suitors previously failed to reach accord with Texas’ regulators.
It is known that Oncor’s CEO Bob Shepard will serve as executive chairman, while general counsel Allen Nye will become the company’s new CEO.
“When we invest in Texas, we invest big,” Warren Buffett, chairman of Berkshire Hathaway, said.
This is Buffet’s second stab at Energy Future. Its subsidiary Texas Competitive Electric Holdings brought the investor an $873 million pretax loss, and after that Buffet called it a “big mistake”.
