tinyfav.com February 23, 2018

Sempra Energy gazumps Warren Buffett with US$9.45bn deal for Oncor

22 August 2017, 01:14 | Melanie Burgess

CEO Warren Buffett plays bridge during the Berkshire annual meeting weekend in Omaha Nebraska U.S. on May

CEO Warren Buffett plays bridge during the Berkshire annual meeting weekend in Omaha Nebraska U.S. on May

Sempra Energy is nearing an agreement to buy Oncor Electric Delivery Co for about US$9.45 billion, according to a person familiar with the matter, putting it in line to scoop up the Texas utility also being pursued by Berkshire Hathaway Inc and Paul Singer's Elliott Management Corp.

San Diego-based energy services holding company said it will pay $9.45 billion in cash for the acquisition - - compared with the $9 billion on offer from Berkshire Hathaway.

Energy Future's board on Sunday favored Sempra's offer over Berkshire Hathaway $9 billion deal to buy Oncor, sources told Reuters, after Sempra also offered assurances it could get its acquisition of Oncor approved by Public Utility Commission of Texas, as well as a US bankruptcy judge.

The announcement signaled that Oncor's parent company has abandoned the $18 billion deal that Berkshire Hathaway, Buffett's multinational conglomerate, unveiled six weeks ago to much fanfare.

Among Sempra's holdings is San Diego Gas & Electric and Southern California Gas. Berkshire had offered US$9 billion, while Elliott had been working on a bid that may total US$9.3 billion.

Reporter expects Chad Henne to start for Jaguars in Week 1
What it likely means is that Henne is the starter unless Bortles magically turns a corner next Thursday against Carolina. The Jaguars were outgained 240-59, with just 1 yard rushing, and had just four first downs on offense in the first half.

SD County unemployment higher than in the US
As of July, New Mexico's unemployment rate was 6.3 percent, the third-worst among the states and the District of Columbia. The losses were not centralized to one main job type, but instead spread out across most industries in the state.

Chief minister of Bihar state joins India's ruling alliance
Sharad camp has been opposing Nitish Kumar's decision to form an alliance government with the BJP . He said the heads of 16 state committees supported the chief minister.

The company took part in a leverage buyout in 2007 and when energy prices started falling, the company's fortunes went downhill.The company filed for bankruptcy in April 2014, citing $40 billion in debt. Elliott previously attempted to put its own $9.3 billion bid together for Oncor, but has now told Reuters it is supportive of Sempra's bid. Buffett is known for shying away from bidding wars.

The deal may put an end to the escalating battle between Buffett and Singer and would be Sempra's largest acquisition since it was formed in 1998, based on data compiled by Bloomberg, expanding its USA utility territory beyond California. "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". Both will serve on Oncor's board.

"It is important for Oncor to remain financially strong", said Reed, who expects the transaction to bring a "satisfactory resolution" to the bankruptcy case.

Sempra plans to maintain the existing independence of Oncor's board, which has protected the electricity company and its customers during the ongoing EFH bankruptcy that has dragged on for three years. Oncor's general counsel, Allen Nye, will become Oncor's CEO.

Claiming the deal will strengthen Oncor's underlying financial strength and credit ratings, Sempra said it is committed to supporting Oncor's $7.5 billion, five-year capital investment plan.

Other News

Trending Now

Pliskova on track as Kerber, Venus fall
It was a bad match for me. "I started the match well and then I played a very bad game in the second set when he broke me". Rafael Nadal and Karolina Pliskova got a doubleheader day started with victories at the Western & Southern Open on Friday.

Three days on, govt confirms 'incident' in Ladakh with Chinese soldiers
Japan understands that if China is allowed to have it say in Doklam, it may have to pay a price on Senkaku in the East China Sea. On Wednesday, the USA had also called India and China to resolve the Dokalam stand-off through dialogue.

Which statues Pelosi wants out of Capitol
Lee and General Thomas Jonathan ( Stonewall) Jackson , West Point graduates, had been stationed at the fort before the Civil War. Nancy Pelosi of California, the House Democratic leader, called Thursday for the removal of Confederate statues from the U.S.

Trump Defends Confederate Monuments, Says They Can't Be 'Comparably Replaced'
As counter-protesters marched in the city, a vehicle ploughed into them, killing activist Heather Heyer and injuring 19 others. President Donald Trump's much-criticized response to the events in Charlottesville also changed Ravi Perry's mind.

Medical scheduled: Manchester City close to agreeing midfielder deal with top-flight side
Antalyaspor have Samuel Eto'o in their ranks and have signed Jérémy Ménez and Johan Djourou , both former team-mates of Nasri. Nasri signed a new five-year deal in 2014, but he endured injury setbacks and he spent last season on loan at Sevilla .

LPGA: Team USA sweeps fourball, leads after Day 1 at Solheim Cup
Despite a Saturday afternoon loss, Hall earned the glowing praise of Nordqvist during successive foursome victories. Women's Open by closing with a 66 at Prairie Dunes to beat Annika Sorenstam , now Team Europe captain.

Cook, Root lead recovery in England's first floodlit Test
Though Marais Erasmus did not give in to the appeal at first, but his decision was reversed upon review. Ben Stokes tried to go for a reverse sweep which ended up putting his gloves to.

'Keeping Up with the Kardashians' star ready for third baby
And apparently she can add "doing karaoke with former President Barack Obama" to that list, too. In a recent interview, Kardashian, 36, was asked if she was planning to expand her family.

Police, Supo received tip about 'radicalised' Turku suspect in early 2017
He also may have to appear in court through a video link from hospital as a hearing is to take place over his detention. Finnish police said on Saturday that an 18-year-old Moroccan asylum seeker deliberately targeted women in the attack.

Derailment in Northern India Kills at Least 23
Photo taken on on August 19, 2017 shows the site of a train derail accident happened at Muzaffarnagar, Uttar Pradesh, India. More casualties are feared as a number of passengers are said to have been trapped in the derailed coaches.