• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 5 mins Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 37 mins The Inconvenient Truth Of Electric Cars
  • 6 hours California and Oil
  • 5 hours The Plastics Problem
  • 9 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 6 mins NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 8 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 3 hours Hydrogen FTW... Some Day
  • 3 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 1 hour Oil Demand Needs to Halve: Equinor
  • 9 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 20 hours What's more Important Iran Nuke Deal or Strong China Trade Deal. Hypothetically, If China offered Trump North Korean and Iran deals in exchange for concessions on trade deal should he take it ?
  • 18 hours Solar Panels at 26 cents per watt
  • 13 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)

Sempra Gets Court’s Greenlight For Oncor Acquisition

Power

Sempra Energy can proceed with its US$9.45-billion acquisition of Oncor Electric Delivery Co. after a bankruptcy judge ruled in favor of the deal. The last hurdle that the suitor needs to clear is the approval of the Texas Public Utility Commission, which blocked two previous acquisition attempts on the grounds that they were lacking in guarantees to preserve the financial integrity of Texas’ largest regulated utility.

Oncor has been operating under bankruptcy protection for the last three years, with its parent, Energy Future Holdings Corp., having accumulated US$50 billion in debt that it is still in the process of restructuring.

Sempra emerged as a bidder for Energy Future’s 80-percent stake in Oncor last month, rivaling Berkshire Hathaway and Elliott Management Corp. Berkshire’s bid valued Oncor at US$9 billion, and Elliott was prepared to offer US$9.3 billion, according to reports from the time.

Earlier bidders for the Dallas-based utility that serves 10 million customers and operates 106,000 miles of distribution lines included NextEra Energy and a group of companies led by Hunt Consolidated Inc. NextEra dropped its offer after the Texas regulator demanded that it protect Oncor’s credit, and Hunt Consolidated left the race after the Texas Public Utility Commission asked it to adhere to conditions it found unreasonable. The consortium even sued the regulator over these conditions.

Related: Is This Country About To Revive Biofuels?

Berkshire Hathaway had everything going for it, including approval from the staff of the state PUC, but it never got the chance to put its case to the bankruptcy court as the seller, Fox News reported, cut a deal with Sempra, which offered a more attractive price, including a lower breakup fee of US$190 million versus Berkshire’s US$270 million.

The winning bidder will likely file for approval with the Texas PUC in October and the commission will have 180 days to review the bid and reach a decision.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Andrew Vanchiere on September 14 2017 said:
    For Irma, regarding your article on PDVSA converting to a basket of currencies and dumping greenbacks, how do you see this impacting their North American operations at Citgo?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News