OMAHA (dpa-AFX) - MidAmerican Energy Holdings Co., a subsidiary of Berkshire Hathaway Inc., Wednesday said it has agreed to buy NV Energy, the Nevada-based electric utility, for about $5.6 billion in cash.
MidAmerican will acquire NV Energy's common stock for $23.75 a share in cash, which represents a premium of about 23 percent over Wednesday's closing price of $19.28. Shares of NV Energy rallied 23 percent in after-hours trade following the news. Including debt, the deal is valued to be about $10 billion.
Berkshire Chairman Warren Buffett said, 'This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in Nevada's economy.' NV Energy serves about 1.3 million electric and natural gas customers in Nevada.
NV Energy Chief Executive Michael Yackira said, 'By joining forces with MidAmerican, we will gain access to additional operational and financial resources as we continue to position NV Energy to support the evolving energy needs of our state and work with public policy leaders and regulators to reshape Nevada's energy future.'
MidAmerican Energy expects to complete the deal in the first quarter of 2014. The deal is subject to customary closing conditions, including NV Energy's shareholders approval and state and federal approvals.
NV Energy will operate as a separate corporate subsidiary of MidAmerican Energy under its current name and will continue to be headquartered in Las Vegas.
On completion of the acquisition, MidAmerican Energy will have assets of around $66 billion and its regulated electric and gas utilities will serve 8.4 million customers.
NVE closed Wednesday's trading at $19.28, down $0.47 or 2.38%, on the NYSE. The stock, however, surged $4.56 or 23.65% in after hours trade.
BRK-B closed Wednesday's trading at $113.03, up $0.75 or 0.67%, on the NYSE.
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