• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 7 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 12 mins China goes against US natural gas
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 7 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 3 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 1 day Why hydrogen economics does not work

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