Sempra to buy Oncor in blow to Buffett

SAN DIEGO, August 22, 2017 – Sempra Energy has agreed to buy Energy Future, which holds about 80% of power transmission company Oncor, for USD 9.45 billion in cash, the US natural gas utilities firm said Monday.

The deal comes as a blow to billionaire investor Warren Buffett, whose Berkshire Hathaway had struck a tentative deal to purchase Oncor for USD 9 billion.

The full enterprise value of the Sempra Energy transaction, which also includes debt of the bankrupt holding company, is about USD 18.8 billion, the statement added.

“Both Sempra Energy and Oncor share more than 100 years of experience operating utilities that deliver safe, reliable energy to millions of customers,” Sempra Energy CEO Debra L. Reed said. “With its strong management team and long, distinguished history as Texas’ leading electric provider, Oncor is an excellent strategic fit for our portfolio of utility and energy infrastructure businesses. “

The deal is subject to approval by the regulatory authorities and the Delaware bankruptcy court, and it is expected to close in H1 2018.

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