MidAmerican Energy Holdings Co., a unit of Berkshire Hathaway Inc., and NV Energy Inc. reached an agreement whereby MidAmerican will acquire NV Energy, an energy holding company serving about 1.3 million electric and natural gas customers in Nevada.
Under the terms of the agreement, MidAmerican will purchase all outstanding shares of NV Energy’s common stock for $23.75 per share in cash. The transaction, which has been unanimously approved by both companies’ boards of directors, has an enterprise value of about $10 billion.
The acquisition is subject to customary closing conditions, including the approval of the transaction by NV Energy’s shareholders and the receipt of required state and federal approvals. The transaction is currently expected to be completed in the first quarter of 2014.
NV Energy will operate as a separate corporate unit of MidAmerican Energy Holdings Co. under its current name and will continue to be headquartered in Las Vegas.
“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.”
Upon completion of this transaction, MidAmerican Energy Holdings Co. will have assets of about $66 billion and its regulated electric and gas utilities will serve 8.4 million customers.
Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Co. and Sierra Pacific Power Co., are doing business as NV Energy. Serving a combined service territory of nearly 46,000 square miles, NV Energy provides a wide range of energy services and products to about 2.4 million citizens of Nevada and nearly 40 million tourists annually.
MidAmerican Energy Holdings Co., based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related businesses, MidAmerican provides electric and natural gas service to more than 7 million customers worldwide. These businesses are Pacific Power, Rocky Mountain Power and PacifiCorp Energy, comprising PacifiCorp; MidAmerican Energy Co.; Northern Powergrid Holdings Co.; Northern Natural Gas Co.; Kern River Gas Transmission Co.; MidAmerican Transmission; MidAmerican Renewables; and CalEnergy Philippines.