Berkshire Hathaway Energy, a subsidiary of Warren Buffett’s Berkshire
Hathaway Inc., announced today it has executed a definitive merger
agreement with Energy Future Holdings Corp. (EFH). Berkshire Hathaway
Energy will acquire reorganized EFH, which will ultimately result in the
acquisition of Oncor, an energy delivery company serving approximately
10 million Texans.
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Berkshire Hathaway Inc. already has a significant presence in Texas with
multiple headquarters in the state, including BNSF Railway Company; Acme
Brick Company; Justin Brands, Inc.; McLane Company, Inc.; Berkshire
Hathaway Automotive; Star Furniture Company; TTI, Inc.; Charter
Brokerage; LiquidPower Specialty Products Inc.; and Allie Beth Allman &
Associates.
“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!” said Warren Buffett, chairman of Berkshire Hathaway. “Oncor
is a great company with similar values and outstanding assets.”
The all-cash consideration for reorganized EFH is $9 billion implying an
equity value of approximately $11.25 billion for 100% of Oncor and is
subject to closing conditions, including the receipt of required state,
federal and bankruptcy court approvals. The transaction is currently
expected to be completed in the fourth quarter of 2017.
Greg Abel, Berkshire Hathaway Energy chairman, president and CEO, said,
“This partnership combines the strengths of two companies that share a
common goal of providing exceptional customer service and a commitment
to invest in critical infrastructure that will make the Texas energy
grid even stronger and more reliable.”
“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,” said
Bob Shapard, CEO of Oncor. “Being part of Berkshire Hathaway Energy is a
great outcome for Oncor. Oncor will remain a locally managed Texas
company headquartered in Dallas, committed to the communities we serve,
and our customers will continue to receive the safe and reliable service
they have come to expect from our dedicated team of employees.”
Effective upon closing of the transaction, Bob Shapard will assume the
role of executive chairman of the Oncor Board, and Allen Nye will assume
the role of CEO of Oncor. “We are excited to begin the regulatory
approval process as this transaction has significant support across our
key stakeholders,” Nye said. “The stakeholders are eager to obtain a
great outcome for Texas.”
“We are pleased to be working with Texas and stakeholders to ensure
Oncor continues to be a strong electric transmission and distribution
company. Oncor is an exceptional company with great employees and an
excellent management team,” said Abel.
Oncor
Headquartered in Dallas, Texas, Oncor is a regulated electric
transmission and distribution service provider that serves 10 million
customers across Texas. Using cutting edge technology, more than 3,700
employees work to safely maintain reliable electric delivery service
with the largest distribution and transmission system in Texas; made up
of approximately 122,000 miles of lines and more than 3.4 million meters
across the state.
Berkshire Hathaway Energy
Berkshire Hathaway Energy owns a portfolio of locally managed businesses
that share a vision for a secure energy future, make sustainable
investments to achieve that vision and had $85 billion of assets as of
Dec. 31, 2016. These businesses deliver affordable, safe and reliable
service each day to more than 11.6 million electric and gas customers
and end-users around the world and consistently rank high among energy
companies in customer satisfaction. Berkshire Hathaway Energy is
headquartered in Des Moines, Iowa, U.S.A. Additional company information
is available at www.berkshirehathawayenergyco.com.
Forward-Looking Statements
This news release contains statements that do not directly or
exclusively relate to historical facts. These statements are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements can
typically be identified by the use of forward-looking words, such as
“will,” “may,” “could,” “project,” “believe,” “anticipate,” “expect,”
“estimate,” “continue,” “intend,” “potential,” “plan,” “forecast” and
similar terms. These statements are based upon Berkshire Hathaway Energy
Company’s current intentions, assumptions, expectations and beliefs and
are subject to risks, uncertainties and other important factors. Many of
these factors are outside the control of Berkshire Hathaway Energy
Company and could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Factors that
could cause actual results to differ materially from those expectations
include the impact of natural disasters and weather effects on revenues
and other operating uncertainties, uncertainties relating to economic,
political and business conditions and uncertainties regarding the impact
of laws and regulations, including laws and regulations related to
environmental protection, changes in government policy and competition.
The foregoing factors that could cause Berkshire Hathaway Energy
Company’s actual results to differ materially from those contemplated in
the forward-looking statements included in this news release should not
be construed as exclusive and should be considered in connection with
information regarding risks and uncertainties that may affect Berkshire
Hathaway Energy Company’s future results included in Berkshire Hathaway
Energy Company’s filings with the Securities and Exchange Commission,
which are available at the Securities and Exchange Commission’s website (www.sec.gov).
Berkshire Hathaway Energy Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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