Berkshire Unit to Buy NV Energy for $5.6B

By EnergyFOXBusiness

Berkshire Hathaway (NYSE:BRKA) subsidiary MidAmerican Energy Holdings agreed Wednesday to a $5.59 billion deal to buy NV Energy (NYSE:NVE), a Nevada-based utilities company.

MidAmerican is set to acquire the company for $23.75 a share in cash, a 23% premium over NV Energy’s closing price Wednesday. The companies said their deal has an enterprise value of $10 billion.

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The transaction, which is subject to approval by NV Energy’s shareholders, is expected to be completed in the first quarter of 2014.

NV Energy will operate as a separate corporate subsidiary of MidAmerican and maintain its headquarters in Las Vegas.

Upon completion of the transaction, MidAmerican will have assets of approximately $66 billion and a total of 8.4 million customers using its regulated utilities.

In a statement, MidAmerican Chief Executive Greg Abel noted NV Energy’s “solid commitment to the state of Nevada” and its performance as a high-quality energy company.

“This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in   Nevada’s economy,” said Warren Buffett, chairman of Berkshire Hathaway. “Through MidAmerican, we have found in NV Energy a great company with similar values, outstanding assets, and a superb management team.”

NV Energy units Nevada Power and Sierra Pacific Power recently have worked to offset lower revenue by cutting expenses. Earlier this month, NV Energy reported first-quarter earnings that soared 76% on significantly lower expenses.

Shares of NV Energy soared nearly 23.2% to $23.75 in after-hours trading.