Berkshire Hathaway Energy has merged with Energy Future Holdings Corp and will take over the energy delivery company Oncor.
“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!” Warren Buffett, chairman of Berkshire Hathaway, said in a press release. “Oncor is a great company with similar values and outstanding assets.”
The equity value of Oncor is an estimated $11.25 billion, according to the release. The deal is set to close by the end of the year.
“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.”
Shapard will be the executive chairman of the Oncor board, while Allen Nye will be the assume the CEO position. Both are hoping to bring strong management to Oncor and continue its growth in the electric transmission and distribution industry.
Berkshire Hathaway Energy is headquartered in Des Moines.
Berkshire Hathaway companies include BNSF Railway Co., Justin Brands Inc. and LiquidPower Specialty Products.