Sempra Energy’s acquisition of Energy Future Holdings Corporation (EFH), the parent company of Oncor, has been completed. The buyout has added Texas’ largest electric transmission and distribution provider to Sempra Energy’s portfolio, thereby expanding its market size and having the largest U.S. customer base. Oncor’s plants provides electricity to more than 3.4 million homes and businesses in Texas and with its acquisition Sempra Energy’s customer base is poised to grow.
Energy Future Holdings Corporation had 80% indirect ownership in Oncor, and the buyout transfers Oncor’s 80% stake to Sempra Energy. The deal has a total enterprise value of about $18.8 billion, including Oncor’s debt and a cash worth $9.45 billion.
According to terms of the agreement, Sempra Energy will support Oncor’s plan to invest $7.5 billion of capital over a five-year period to expand and reinforce its transmission and distribution network. Such planned investments will enhance the service territories of Oncor and thereby enable Sempra Energy to profitably grow in size and numbers.
The company entered into the buyout agreement on August 21, 2017 and was recently granted regulatory approvals from The Public Utility Commission of Texas and the U.S. Bankruptcy Court for the District of Delaware. Post buyout, Allen Nye — Oncor’s senior vice-president will be its new CEO, succeeding Bob Shapard, who becomes the company’s new chairman.