US-based electric and gas services provider MidAmerican Energy, a subsidiary of Berkshire Hathaway, has signed an agreement to acquire NV Energy for about $10bn.
NV Energy is a US-based energy holding company that serves almost 1.3 million electric and natural gas customers in Nevada.
Under the terms of the agreement, MidAmerican will purchase all outstanding shares of NV Energy’s common stock for $23.75 per share in cash.
Following the acquisition, MidAmerican Energy will have assets of about $66bn and its regulated electric and gas utilities will serve 8.4 million customers.
MidAmerican chairman, president and CEO Greg Abel said, "The benefits we bring to NV Energy are the resources and strength of a global energy partner that lends stability, expertise, and access to competitively priced capital to support NV Energy’s strategic focus."
Berkshire Hathaway chairman Warren Buffett said the long term investment in NV Energy strategically fits Berkshire Hathaway
"Through MidAmerican, we have found in NV Energy a great company with similar values, outstanding assets, and a superb management team," Buffett added.
Subject to customary closing conditions, including the approval of the transaction by NV Energy’s shareholders and state and federal approval, the deal is expected to be closed in the first quarter of 2014.