Berkshire Hathaway Unit To Pay $9B For Bankrupt EFH

The transaction is subject to closing conditions, including the receipt of required state, federal and bankruptcy court approvals.

This latest savvy acquisition is the biggest by Berkshire since last year's purchase of Precision Castparts for $32 billion, the company's largest ever.

Berkshire Hathaway Energy typically generates almost 10 percent of its parent's profit, contributing United States dollars 2.29 billion to an overall USD 24.07 billion in 2016.

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The proposed merger would need the sign-off of the DE judge overseeing Energy Future Holdings' bankruptcy, along with approvals from the Public Utility Commission of Texas and federal regulators.

The takeover of Energy Future will be vital to ending its bankruptcy as it has been working since 2014 to restructure US$50bn of debt.

That caught up Mr. Buffett: He bought about $2 billion of Energy Future's debt, a decision that he said he had made without consulting his longtime business partner, Charles Munger.

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The deal by Berkshire was not a surprise to most analysts considering Berkshire was amongst those that were identified as leading bidders in 2016 for the utility. (NYSE:BRK.A), has agreed to acquire Energy Future Holdings Corp. for $9 billion in cash. As TXU in 2007, it was the center of the largest leveraged buyout at that time, but the deal ended with a credit crisis.

Mr. Buffett has long hailed the performance of Berkshire Hathaway Energy, whose collection of utilities delivers power to 11.6 million customers across the Midwest and the West, as well as in Britain and Canada.

If the deal goes through, Oncor CEO Bob Shapard will take on the role of executive chairman of the Oncor Board and current senior vice president Allen Nye replace him as CEO.

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