2017.08.2123:06:00UTC+00Sempra Energy Strikes Deal to Buy Oncor for $9.45 Billion

American utilities company Sempra Energy announced that it would buy Oncor for $9.45 billion in cash after Energy Future Holdings Corp dropped a deal to sell the power transmission firm to Warren Buffet's Berkshire Hathaway Inc.

Two months ago, Buffett swooped in to purchase Oncor after Texas regulators blocked two earlier attempts by Energy Future to sell it.

Energy Future planned to seek court approval for the sale of Oncor to Berkshire for $9 billion over opposition from its largest creditor Elliott Management Corp. However, Energy Future lawyer Chad Husnick said that the company will “pursue another path” with Sempra due to the value of the bid, a lower break-up fee and also support from Elliott.

Sempra is seen to own nearly 60 percent of the reorganized Oncor after the transaction is completed, which is worth $18.8 billion that also includes debt. Energy Futures owns 80 percent.

According to individuals that are familiar with the topic, Sempra plans to sell some of the equity to other outside investors.

Shares of Sempra rose 1.2 percent at $117.79 after touching an all-time peak of $118.78 on Monday.