Investing.com - Sempra Energy (NYSE:SRE) will buy Oncor for $9.45 billion in cash after majority owner Energy Future Holdings abandoned its deal to sell the power transmission company to Warren Buffett's Berkshire Hathaway Inc . (NYSE:BRKa)
Two months ago, Berkshire Hathaway made a deal to purchase Oncor after Texas regulators blocked two previous attempts by Energy Future Holdings to sell it.
Berkshire Hathaway had swooped in two months ago to buy Oncor after Texas regulators blocked two previous attempts by Energy Future to sell it. Bankrupt Energy Future Holdings chose Sempra's bid for a few reasons: because it was for more money, and also because Sempra Energy offered assurances that it could get the acquisition approved by Public Utility Commission of Texas and the U.S. bankruptcy judge.
In addition, the decision could have been influenced by the fact that Energy Future Holdings received a great deal of opposition from its largest Creditor, Elliott Management Corp., over the potential sale to Berkshire Hathaway.
Sempra is expected to own about 60% of a reorganized Oncor after it completes the transaction.
Sempra's shares were up about 1% in afternoon trade.