NextEra Energy has entered into an agreement to acquire Texas transmission company Oncor Electric Delivery in a cash and stock deal worth $18.4bn .
The power provider said that it would purchase an 80% stake in Oncor from Energy Future Holdings (EFH).
The sale is part of EFH’s restructuring plan that is designed to help the company to exit bankruptcy.
NextEra Energy chairman and chief executive officer Jim Robo said: “We are incredibly impressed by Oncor’s management team and its employees, and we are committed to retaining the Oncor name, its Dallas headquarters and local management.
“NextEra Energy shares Oncor’s strategy of making smart, long-term investments in transmission and distribution to continue to deliver affordable, reliable electric service to its customers.
“We look forward to working closely with Oncor’s leadership team and filing our joint application with the Public Utility Commission of Texas.”
As part of the transaction, NextEra will fund $9.5bn, mainly to repay the debt of EPH.
The transaction is subject to bankruptcy court confirmation of EFH’s plan of reorganization, approval by the Public Utility Commission of Texas, the expiration or termination of the waiting period under the Hart-Scott-Rodino Act, the Federal Energy Regulatory Commission and other customary conditions and approvals.
NextEra Energy expects the transaction to be completed in the first quarter of 2017.
Robo said: “We believe our deep operating expertise in Texas and across the nation, strong financial profile and experience operating in a regulated utility environment offer uniquely compelling advantages.”
Recently, the Hawaii Public Utilities Commission (PUC) rejected the NextEra Energy’s proposed $4.3bn deal to acquire Hawaiian Electric Industries (HEI).
The transaction, which was signed in 2014, involved the assumption of $1.7bn in HEI debt and excluded banking subsidiary of HEI.
Image: Electric power transmission with overhead line. Photo courtesy of Guam~commonswiki/Wikipedia.