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FERC approves Sempra’s $9.45bn acquisition of Oncor

By: EBR |

The US Federal Energy Regulatory Commission (FERC) has approved Sempra Energy’s $9.45bn acquisition of Energy Future Holdings (EFH) and its ownership of around 80% in Oncor Electric Delivery Company.

In late August, California-based natural gas utilities company Sempra entered into a deal to acquire EFH in a transaction valued at around $18.8bn which includes the assumption of Oncor’s debt.

The transaction from Sempra is expected to resolve the long-running bankruptcy case of EFH and also ensure continued safe, reliable service for the customers of Oncor.

As part of the deal, Sempra had committed to back Oncor’s plan to invest $7.5bn of capital through a five-year period to grow and strengthen its transmission and distribution network.

Sempra had faced competition from Berkshire Hathaway Energy which offered to acquire EFH and Oncor for a sum of around $18.1bn but ended up scrapping it in August.

In September, EFH’s entry into the merger agreement with Sempra Energy secured an approval from the US Bankruptcy Court for the District of Delaware.

It was followed in October by the filing of a joint Change-in-Control application by Sempra Energy and Oncor with the Public Utility Commission of Texas (PUCT).

Subsequently, PUCT put up a procedural schedule to finish a review of Sempra Energy’s and Oncor’s case inside 180 days, to give its decision by early April 2018.

Completion of the EFH transaction will depend on approvals from the US Bankruptcy Court and the PUCT along with other approvals and meeting of closing conditions.

The transaction is anticipated to be completed in the first half of 2018.

Based in Dallas, Oncor is a regulated electric transmission and distribution service provider. The company is claimed to be the largest utility in Texas with nearly 19,71,44km of lines and over 3.4 million advanced meters.

Oncor, with a workforce of over 3,900 employees, provides electricity to more than 10 million Texans.