Sempra Energy to buy Oncor for $9.45 billion in blow to Berkshire
(Reuters) - Utility Sempra Energy said on Monday that it would buy Oncor for $9.45 billion in cash after majority owner Energy Future Holdings Corp abandoned a deal to sell the power transmission company to Warren Buffett's Berkshire Hathaway Inc.
This represents a rare blow to Buffett, who avoids bidding wars for companies and had swooped in two months ago to buy Oncor after Texas regulators blocked two previous attempts by Energy Future to sell it.
Energy Future, which has been in bankruptcy since 2014, had initially planned to seek court approval on Monday for the sale of Oncor to Berkshire for $9 billion over opposition from its biggest creditor, hedge fund Elliott Management Corp. Instead, Energy Future lawyer Chad Husnick told the court the Dallas-based company had decided to "pursue another path" with Sempra because of the value of the bid, a lower break-up fee and, most importantly, support from Elliott.
San Diego-based Sempra said it expected to own about 60 percent of a reorganized Oncor after it completes the transaction, which is valued at $18.8 billion, including debt. Energy Future owns 80 percent, but Sempra plans to sell some of that equity to other outside investors, according to people familiar with the matter.
Read more: http://www.reuters.com/article/us-oncor-m-a-sempraenergy-idUSKCN1B1041