Oncor is the company that distributes electricity to about 10 million Texans.
Berkshire Hathaway expects the deal to close in the final quarter of 2017, provided it can secure state, federal and court approvals.
Berkshire Hathaway Energy (BHE), a subsidiary of Berkshire Hathaway, announced that it will be buying Texas-based Oncor, an electric transmission and distribution service.
Berkshire is the third company that will come before regulators in Texas to ask permission to purchase a utility they have highly guarded to date.
"Being part of Berkshire Hathaway Energy is a great outcome for Oncor". According to Reuters, Warren Buffett's company was previous a leading bidder for the utility. Energy Future, formerly known as TXU, had been taken private in the biggest leveraged buyout on record, but it ran into trouble after energy prices quickly took a dive, eating into the profits of its power business.
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It provides payment services for point of sale transactions, and internet and mail order retailers. Vantiv's Charles Drucker will become executive chairman and co-chief executive.
Mr. Buffett has long hailed the performance of Berkshire Hathaway Energy, whose collection of utilities delivers power to 11.6 million customers across the Midwest and the West, as well as in Britain and Canada. (NYSE:BRK.A)(NYSE:BRK.B) is another option for investors considering adding an actively managed portfolio of stocks which should continue to outperform for the foreseeable future.
The takeover of Energy Future will be vital to ending its bankruptcy as it has been working since 2014 to restructure US$50bn of debt.
It said the transaction implies an equity value of about United States dollars 11.25 billion for Oncor.
Under their agreement, the executive chairman of Oncor will be Bob Shapard, while the CEO will be Allen Nye.
Then, this year, another bid by NextEra Energy was rejected - three times.