Dominion Energy is commencing a competitive process for the sale of Questar Pipelines
Kiewit Tower, the location of Berkshire's corporate offices in Omaha, Nebraska. (Credit: JonClee86 at English Wikipedia)
Dominion Energy (NYSE: D) and Berkshire Hathaway Energy, an affiliate of Berkshire Hathaway Inc. (NYSE: BRK.A), today announced they have agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy. The decision is a result of ongoing uncertainty associated with achieving clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Termination of the sale, effective July 9, 2021, was a potential outcome provided for in the agreement to sell Questar Pipelines. The decision has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy completed in November 2020. That sale represented approximately 80% of the original transaction value.
Dominion Energy is commencing a competitive process for the sale of Questar Pipelines, with a target close of year-end 2021.
Today’s announcement does not change Dominion Energy’s existing financial guidance. Dominion Energy will continue to account for Questar Pipelines as discontinued operations. Dominion Energy intends to enter into a 364-day term loan. The company will use proceeds from the loan to repay the approximately $1.3 billion transaction deposit made by Berkshire Hathaway Energy. That loan is expected to be repaid by year-end 2021 with proceeds from the sale of Questar Pipelines to an alternative buyer.
Source: Company Press Release