Buffet, NextEra, And The Hunts, Dropping Billion Bids For Oncor Electric Co.
Oncor Electric Delivery Co., Texas’ Largest controlled utility, has been on the sales market for two years since its parent company filed for Chapter 11. The suitors includes big names like Warren Buffett, NextEra, and the Ray Hunt family .
With the Hunts’ $18 billion bid after Texas regulators imposed certain conditions, Oncor’s fate is again up in the air. According to a report, Warren Buffett’s Berkshire Hathaway put in a bid last week. Through acquisitions, Buffett’s energy unit has developed rapidly since 2000.
As one of the top power players in the world, NextEra Energy, one month ago was thought as the leading contender. With its enlarged market value, it seems to have more capital to use. After failed in the Hawaiian bid, it is estimated that NextEra might increase its offer.
As Buffet said in a letter to shareholders in 2015, the company would continue to buy and build utility operations throughout the word for decades to come. While he also stated that” We don’t do auctions”, Berkshire Hathaway Company might use a larger bid to avoid a bidding war.
Still, the fate of Oncor remains to be seen. Good luck getting Oncor.