MidAmerican Energy Holdings Co., a unit of Berkshire Hathaway Inc., is buying NV Energy Inc. for $23.75 a share in cash, or around $5.6 billion. The companies said the deal was unanimously approved by both boards of directors and could be completed in the first quarter of 2014, pending shareholder approval as well as approval by state and federal regulators.
"By joining forces with MidAmerican, we will gain access to additional operational and financial resources," said Michael Yackira, president and CEO of NV Energy. He said NV Energy also will be able to combine MidAmerican’s expertise in renewable energy with Nevada’s renewable resources. MidAmerican owns 2,700 MW of renewable generating capacity, including 380 MW of wind capacity and 1,270 MW of solar capacity.
Under terms of the deal, NV Energy will operate as a separate business unit of MidAmerican Energy Holdings Co. under its current name and will continue to be based in Las Vegas.
"This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in Nevada’s economy," said Warren Buffett, chairman of Berkshire Hathaway. "Through MidAmerican, we have found in NV Energy a great company with similar values, outstanding assets, and a superb management team."
MidAmerican said that once the acquisition closes, it will have assets of some $66 billion and its regulated electric and gas utilities will serve 8.4 million customers. The company currently provides electric and natural gas service to more than 7 million customers worldwide. Its businesses are Pacific Power, Rocky Mountain Power, and PacifiCorp Energy, comprising PacifiCorp; MidAmerican Energy Co.; Northern Powergrid Holdings Co.; Northern Natural Gas Co.; Kern River Gas Transmission Co.; MidAmerican Transmission; MidAmerican Renewables; and CalEnergy Philippines.
In April, NV Energy announced that it planned to accelerate the retirement of its coal-fired generating facilities and construction of natural gas and renewable power plants. The company’s gas-fired Fort Churchill Generating Station, which celebrated a 25-year safety record last year, was the subject of the guest commentary in the current issue of POWER.
Sources: POWERnews, NV Energy, MidAmerican Energy
—David Wagman, Executive Editor (@EPContentDirect)
NOTE: This story was originally published on May 29