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US: Sempra Energy bids US$9.45bn for Oncor beating Buffett offer

 |  August 21, 2017

Sempra Energy has reached a deal to buy Oncor for US$9.45 billion after swooping in to snatch the power-transmission company away from Warren Buffett’s Berkshire Hathaway.

It’s not the first time Oncor has tried a new partner. In fact, Sempra marks the fourth company that’s lined up a deal to buy Oncor, which has more than 4,000 employees. The first two deals collapsed amid regulatory scrutiny.

Buffett’s firm had agreed to buy Energy Future out of bankruptcy, targeting power-transmission unit Oncor, which serves more than 10 million customers in Texas.

But Sempra swooped in and reached a last-minute deal to acquire Sempra after Oncor hedge fund creditor Elliott Management objected to Buffett’s price.

Sempra said it would invest US$7.5 billion over five years in capital projects to “expand and reinforce” Oncor’s electrical grid infrastructure.

Full Content: New York Times

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