Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Berkshire's MidAmerican Energy to Buy NV Energy

Berkshire Hathaway (NYSE: BRK-B  ) utility MidAmerican Energy provides electricity and natural gas services to consumers across the middle of the U.S. and along the West Coast. Yet one state it has not served up until now has been Nevada, and it plugged that hole with the announcement yesterday that it is purchasing NV Energy (UNKNOWN: NVE.DL  ) , a holding company whose subsidiaries do business as Nevada Power Company and Sierra Pacific Power Company.

MidAmerican will purchase all outstanding shares of NV Energy for $23.75 per share in cash, a 23% premium to its closing price on May 29. As of this writing, shares are trading at $23.58.

The transaction, which has been unanimously approved by both companies' boards of directors, sets an enterprise value for NV at approximately $10 billion. Because the deal is subject to customary closing conditions, including approval by NV Energy's shareholders as well as the OK from federal and state regulators, the transaction is not expected to close before the first quarter of 2014.

Berkshire Chairman Warren Buffett was quoted as saying: "This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in Nevada's economy. Through MidAmerican, we have found in NV Energy a great company with similar values, outstanding assets, and a superb management team."

As is usual with a Buffett acquisition, management will continue in place at the utility and NV Energy will operate as a separate corporate subsidiary of MidAmerican Energy under its current name and will continue to be headquartered in Las Vegas.

When completed, MidAmerican Energy will have assets of approximately $66 billion and its regulated electric and gas utilities will serve 8.4 million customers.

Lazard Ltd. served as financial advisor to NV Energy in the deal while Sidley Austin LLP, Hogan Lovells, and Reno, Nev.-based Woodburn and Wedge served as legal advisors.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2460591, ~/Articles/ArticleHandler.aspx, 9/30/2016 2:50:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:02 PM
BRK-A $215300.00 Down -2395.00 -1.10%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $143.59 Down -1.69 -1.16%
Berkshire Hathaway… CAPS Rating: *****
NVE.DL $0.00 Down +0.00 +0.00%
NV Energy CAPS Rating: *****