Berkshire Hathaway Energy, a division of Warren Buffett's Berkshire Hathaway Inc., (BRK.A) (BRK.B) , confirmed Friday that it will purchase Oncor Electric Delivery Co. LLC in a deal that values the bankrupt unit's equity at $11.25 billion.
Berkshire Hathaway Energy will pay $9 billion in cash to Oncor's parent, Energy Future Holdings Corp, a group that Buffett invested in, via a corporate bond, back in 2013, resulting in one of the Sage of Omaha's rare losses. The deal is expected to close by the end of the year, the companies said, pending approval from both regulators and bankruptcy courts.
"Oncor is an excellent fit for Berkshire Hathaway, and we are pleased to make another long-term investment in Texas - when we invest in Texas, we invest big!", Buffett said in a statement. "Oncor is a great company with similar values and outstanding assets."
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