Sempra bids $9.45B for Oncor, topping Buffett offer

SAN DIEGO – Sempra Energy is buying Texas power transmitter Oncor for $9.45 billion in cash, wresting it away from Warren Buffett’s Berkshire Hathaway.

Sempra said Monday that it will also pick up $9.35 billion of the company’s debt. To gain possession of Oncor, Sempra will acquire the reorganized Energy Future Holdings Corp. Energy Future entered bankruptcy in 2014, saddled with more than $40 billion in debt due to cratering energy prices.

Berkshire Hathaway said last month that it would buy Oncor for $9 billion, and last week it stuck to that bid. Hedge fund Elliott Management, which owns a significant portion of Oncor’s debt, opposed Berkshire’s takeover bid, saying it wasn’t enough. But Berkshire Hathaway stood firm on its offer, saying last week that it would not be increasing the bid.

Elliott spokesman Michael O’Looney said the hedge fund supports Sempra’s bid because it will provide more to all of Oncor and Energy Future’s creditors.

Greg Abel, who leads Berkshire Hathaway Energy, said he’s disappointed the Oncor deal was terminated by Energy Future. But Berkshire is entitled to receive a $270 million termination fee that was negotiated.

Sempra expects to close the sale in the first half of next year.