Sempra Energy to buy Oncor for $9.45n

Sempra Energy has agreed to buy Energy Future, the indirect owner of 80% of Texas utility Oncor, beating off Warren Buffett's Berkshire Hathaway.

Under the terms of the agreement, Sempra will pay around $9.45bn in cash to buy Energy and its ownership in Oncor, "taking a major step forward" in resolving the company's long-running bankruptcy case. Including the assumption of Oncor's debt, the enterprise value of the deal is approximately $18.8bn.

Sempra chairman and president Debra L. Reed said: "With its strong management team and long, distinguished history as Texas' leading electric provider, Oncor is an excellent strategic fit for our portfolio of utility and energy infrastructure businesses. We believe our agreement with Energy Future will help ensure that Texas utility customers continue to receive the outstanding electric service they have come to expect from Oncor and provide stability to Oncor's nearly 4,000 employees.

Reed added: "It is important for Oncor to remain financially strong. Our proposal will help bring a satisfactory resolution to Energy Future's bankruptcy case, keep Oncor financially strong, and protect Oncor customers, while addressing the needs of Texas regulators, creditors and the US Bankruptcy Court."

Sempra said the transaction, which is due to complete in the first half of next year, will enhance earnings beginning in 2018 and further expand its regulated earnings base, while serving as a platform for future growth in the Texas energy market and US Gulf Coast region.

As part of the deal, Sempra has committed to support Oncor's plan to invest $7.5bn of capital over a five-year period to expand and reinforce its transmission and distribution network.

Warren Buffett's Berkshire Hathaway had agreed earlier in the summer to buy Energy Future for $9bn after two previous attempts to sell the company were blocked by Texas regulators.