Berkshire Hathaway Is Said to Near Deal to Buy Oncor, DJ Says
Berkshire was said to be a leading bidder of Oncor last year.
(Bloomberg) -- Berkshire Hathaway Inc. is close to a deal to acquire Energy Future Holdings Corp.’s Oncor Electric Delivery Co., Dow Jones said, citing people familiar with the matter.
The deal could be announced as soon as Thursday, according to Dow Jones. Last year, people familiar with the matter said Berkshire had submitted a bid and that Energy Future was mulling offers that valued Oncor at $18 billion.
The potential move from Berkshire comes after NextEra Energy Inc. last month failed to persuade skeptical utility regulators in Texas to take another look at its stalled $18.4 billion bid for Oncor, the state’s biggest transmission operator. Selling Oncor is the last hurdle in ending the high-profile bankruptcy of Energy Future Holdings, formed by KKR & Co., TPG Capital and Goldman Sachs Capital Partners as part of the biggest leveraged buyout in history.
Texas regulators expressed concerns throughout NextEra’s proceedings about the loss of ring-fencing measures designed to protect Oncor’s credit rating and control of the company’s board.
Jessi Strawn, a spokeswoman for Berkshire Hathaway’s energy unit, declined to comment on the potential deal. Warren Buffett, Berkshire Hathaway Inc.’s chairman and chief executive, didn’t immediately respond to a message left with an assistant.
--With assistance from Noah Buhayar
To contact the reporters on this story: Christine Buurma in New York at cbuurma1@bloomberg.net, Ryan Collins in Houston at rcollins74@bloomberg.net.
To contact the editor responsible for this story: Lynn Doan at ldoan6@bloomberg.net.