The Public Utility Commission of Texas (PUCT) has given its approval for Oncor Electric Delivery Company to acquire InfraREIT.
Image: Oncor receives regulatory approval to buy InfraREIT. Photo: Courtesy of Free-Photos/Pixabay.
Last October, Oncor agreed to buy InfraREIT for $1.275bn, plus assuming $940m of its debt as of 31 March 2019. including all the limited-partnership units in its subsidiary InfraREIT Partners.
The PUCT has also given its approval to Sempra Energy’s acquisition of a 50% limited-partnership interest in a holding company that will own Sharyland Utilities.
Oncor CEO Allen Nye said: “Today is an exciting day for Oncor. When our acquisition of InfraREIT is complete, we will expand our transmission footprint and be better positioned to support the long-term needs of the ERCOT market.
“We want to thank the Commissioners, Commission staff, and all the stakeholders involved in this process for their hard work. We look forward to closing this transaction.”
The deal required approvals by the PUCT, the Federal Energy Regulatory Commission and it also needed approval from shareholders of InfraREIT, which was received this February.
Sempra Energy chairman and CEO Jeffrey W. Martin said: “Texas is a great place to do business, and we are pleased that the Public Utility Commission approved another opportunity for Sempra Energy to invest in Oncor, and the state.
“We look forward to continuing to advance our growth strategy in Texas and the U.S. Gulf Coast region.”
As part of the deal, a subsidiary of InfraREIT will exchange certain assets with Sharyland. Following Oncor’s acquisition of InfraREIT, Oncor will own all of InfraREIT’s and Sharyland’s electric transmission and distribution business across Central, North and West Texas and Sharyland will own Sharyland and InfraREIT assets in South Texas.
InfraREIT president and CEO David A. Campbell said: “We appreciate the time and effort of all of the parties to the PUCT proceeding in jointly working toward the settlement that we presented to the Commission in April, and we thank the Commission for its thoughtful consideration of our transaction.”