Investment in the Texas utilities industry has always been a large part of the Texas economy and this week’s announcement that Berkshire Hathaway is purchasing Oncor is another large milestone on that path.
Below are a couple of articles that broke in the news this week and that detail the purchase and the motivations behind it.
Warren Buffett unveils deal to buy big piece of Texas electric grid
Warren Buffet is making a play for Texas’ largest electric transmission utility. Berkshire Hathaway, his multinational conglomerate, has unveiled a deal to buy Oncor.
Warren Buffet is making a play for Texas’ largest electric transmission utility.
Berkshire Hathaway, the famed billionaire’s multinational conglomerate, unveiled a roughly $18 billion deal Friday to buy Oncor, whose roughly 120,000 miles of transmission and distribution lines deliver power to more than 3 million homes and businesses in North and West Texas.
If approved, the deal could help deliver Energy Future Holdings, Oncor’s parent company and Texas’ largest power conglomerate, from one of the largest corporate bankruptcies in American history. That company, which filed for Chapter 11 bankruptcy in 2014, is saddled with about $50 billion in debt… Read more
Below is another article that outlines why so many in the industry are endorsing the planned purchase.
Warren Buffett’s plan to buy Texas electricity giant Oncor is a winner, and here is why
For most of the past decade, Oncor Electric Delivery Co. has shown that ownership doesn’t matter much. Maybe that’s because it never had the kind of owner it deserved.
Warren Buffett is about to change that.
Last week, a unit of the giant holding company that Buffett leads, Berkshire Hathaway Energy, agreed to acquire Oncor for $18.1 billion, including debt. In recent years, two other sales of the state’s largest regulated utility were proposed, only to be derailed by the Texas Public Utility Commission.
This case is different, in part because Berkshire and Oncor had the foresight to win over stakeholders in advance. Groups representing cities, industries and consumers support the deal. Even the PUC staff director endorsed the takeover… Read more