Just one day after receiving final approval from Texas regulators, Sempra Energy completed its acquisition of Energy Future Holdings Corp., the bankrupt owner of 80 percent of Oncor.
“The completion of this acquisition – the biggest in our 20-year history – represents an important milestone in the execution of our growth strategy moving forward,” said Debra L. Reed, chairman, president and CEO of Sempra Energy. “We expect the addition of Oncor to diversify our base of U.S. utility earnings and create a broader platform for our expansion in the future. Oncor is an exceptional utility and we plan to provide the support it needs to continue to safely and reliably meet the needs of its millions of customers and the expanding economy in Texas.”
Oncor will remain in Dallas, and Allen Nye, Oncor’s senior vice president and general counsel, will become Oncor’s CEO. Former CEO Bob Shapard is now the company’s chairman.
NextEra Energy had sought to purchase the company last year for $18 billion, but the Public Utility Commission of Texas shot them down twice.
Afterward, Oncor drew the attention of multiple suitors, starting with a $9 billion bid from Berkshire Hathaway. That bid was soon topped by a proposal by Elliott Management Corp 11, the largest creditor of Energy Future Holdings Corp., for $9.3 billion.
Sempra’s $9.45 billion bid came just hours before a purchase hearing deadline in August. A person familiar with the matter said Elliott’s public bid allowed Sempra to quietly work on its bid for weeks.
Sempra’s bid was approved by a bankruptcy court.
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