Contact Your Financial Adviser Money Making MC
7 July 2017
 |
| Warren Buffett's (The Total Investment & Insurance Solutions) |
Warren Buffett's Berkshire Hathaway is buying the Texas power transmitter
Oncor for $9 billion, one of his biggest acquisitions. The Total Investment & Insurance Solutions
Last year, Berkshire completed its biggest
acquisition in its history, a $32.36 billion deal for aviation parts maker
Precision Castparts. The Total
Investment & Insurance Solutions
Oncor serves about 10 million people and is
the biggest regulated utility in Texas. Its parent company, Energy Future
Holdings Corp., entered bankruptcy in 2014 facing more than $40 billion in debt
after energy prices plunged. The Total
Investment & Insurance Solutions
Berkshire Hathaway will acquire a reorganized
Energy Future, ultimately leading to the buyout of Oncor, based in Dallas. The Total Investment & Insurance
Solutions
It's the third time that that an acquisition
attempt has been made for Oncor. In April Texas regulators rejected a proposed
$18 billion sale of Oncor to NextEra Energy Inc. That price tag included debt,
which may also double the enterprise value of the deal that Buffett is
attempting to cobble together.
The regulators failed to accept that the
NextEra transaction was in the public interest — a requirement for the deal. A
buyout attempt last year backed by the Ray Hunt family of Dallas also faltered.
Berkshire Hathaway already has a significant
presence in Texas, which includes headquarters for BNSF Railway Co., Acme Brick
Co., Justin Brands Inc., McLane Co., Berkshire Hathaway Automotive, Star
Furniture Co., TTI Inc., Charter Brokerage, LiquidPower Specialty Products Inc.
and Allie Beth Allman & Associates.
The Total Investment & Insurance Solutions
The deal, which requires state, federal and
bankruptcy court approval, is targeted to close in the fourth quarter.The Total Investment & Insurance
Solutions
No comments:
Post a Comment