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Released June 03, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--MidAmerican Energy Company (Des Moines, Iowa), a subsidiary of Berkshire Hathaway (NYSE:BRK-A) (Omaha, Nebraska), is set to acquire NV Energy Incorporated (NYSE:NVE) (Reno, Nevada), the holding company for energy subsidiaries Nevada Power Company and Sierra Pacific Power Company.
The deal, announced last week, will see MidAmerican purchase outstanding shares of NV Energy's $23.75 per share in cash. The price is more than 20% over the NV Energy share price at close of trading last week, but trading since the deal was announced has pushed the share price up to almost equal it. Both companies' boards of directors have approved the deal, which is worth about $10 billion. The acquisition is subject to approval from NV Energy's shareholders, as well as state and federal approvals.
The deal is expected to be completed in the first quarter of next year. Once it goes through, MidAmerican Energy Holdings Company will have assets of approximately $66 billion and grow from 7 million to 8.4 million electricity customers. Berkshire Hathaway, controlled by Warren Buffett, owns about 80 subsidiaries in various sectors, including clothing, jewelry and furniture. The Sierra Pacific Power Company name has all but disappeared from public use over the years since the 1999 merger with Nevada Power. NV Energy said in a statement about the deal that it will "operate as a separate corporate subsidiary of MidAmerican Energy Holdings Company under its current name and will continue to be headquartered in Las Vegas."
"This partnership combines the strengths of two companies that share a common goal of serving our customers well through operational excellence and enhancing value for the communities we serve," said Greg Abel, MidAmerican Chairman, President and CEO. "Part of what attracted MidAmerican to NV Energy is its solid commitment to the state of Nevada and its performance as a high-quality energy business that has a strong focus on customer satisfaction, safety, environmental stewardship, and employee commitment."
Abel added: "The benefits we bring to NV Energy are the resources and strength of a global energy partner that lends stability, expertise, and access to competitively priced capital to support NV Energy's strategic focus. We are very excited about the strategic direction of [President and CEO of NV Energy] Michael Yackira and his team; it is an excellent fit with our business model and customer focus."
The deal gives NV Energy capital backing, which it can use to explore generation and transmission growth, as well as asset maintenance and upgrade spending, not to mention increased negotiating power with utilities and engineering, procurement and construction contractors.
Industrial Info customers can view full plant profiles of any NV Energy plant throughout the Industrial Info Plant Database. Examples include the stations below, of which NV Energy owns, operates or has majority control:
The deal, announced last week, will see MidAmerican purchase outstanding shares of NV Energy's $23.75 per share in cash. The price is more than 20% over the NV Energy share price at close of trading last week, but trading since the deal was announced has pushed the share price up to almost equal it. Both companies' boards of directors have approved the deal, which is worth about $10 billion. The acquisition is subject to approval from NV Energy's shareholders, as well as state and federal approvals.
The deal is expected to be completed in the first quarter of next year. Once it goes through, MidAmerican Energy Holdings Company will have assets of approximately $66 billion and grow from 7 million to 8.4 million electricity customers. Berkshire Hathaway, controlled by Warren Buffett, owns about 80 subsidiaries in various sectors, including clothing, jewelry and furniture. The Sierra Pacific Power Company name has all but disappeared from public use over the years since the 1999 merger with Nevada Power. NV Energy said in a statement about the deal that it will "operate as a separate corporate subsidiary of MidAmerican Energy Holdings Company under its current name and will continue to be headquartered in Las Vegas."
"This partnership combines the strengths of two companies that share a common goal of serving our customers well through operational excellence and enhancing value for the communities we serve," said Greg Abel, MidAmerican Chairman, President and CEO. "Part of what attracted MidAmerican to NV Energy is its solid commitment to the state of Nevada and its performance as a high-quality energy business that has a strong focus on customer satisfaction, safety, environmental stewardship, and employee commitment."
Abel added: "The benefits we bring to NV Energy are the resources and strength of a global energy partner that lends stability, expertise, and access to competitively priced capital to support NV Energy's strategic focus. We are very excited about the strategic direction of [President and CEO of NV Energy] Michael Yackira and his team; it is an excellent fit with our business model and customer focus."
The deal gives NV Energy capital backing, which it can use to explore generation and transmission growth, as well as asset maintenance and upgrade spending, not to mention increased negotiating power with utilities and engineering, procurement and construction contractors.
Industrial Info customers can view full plant profiles of any NV Energy plant throughout the Industrial Info Plant Database. Examples include the stations below, of which NV Energy owns, operates or has majority control:
- Chuck Lenzie Generating Station
- Edward W. Clark Generating Station
- Fort Churchill Generating Station
- Frank A. Tracy Generating Station
- Harry Allen Generating Station
- North Valmy Generating Station
- Reid Gardner Generating Station
- Silverhawk Generating Station
- Walter M. Higgins Generating Station
- Las Vegas 500kV East Valley Grassroot Transmission Line
- Moapa Coal 114MW Reid Gardner Unit #3 Upgrade
- Moapa Coal 114MW Reid Gardner Unit #3 1Q14 Maintenance Outage
- Valmy Coal 267MW Unit #2 2q14 Maintenance Outage
- Tonopah 230kV Anaconda Moly Substation Expansion
- Las Vegas Natural Gas 90MW Unit #10 St 1Q16 Maintenance Outage
- Primm Natural Gas 580MW Walter M. Higgins Combined Cycle Addition
