Berkshire Hathaway Energy to Acquire Remaining Stake from Walter Scott Family in $2.37B Deal
In a major move, Berkshire Hathaway Energy, a unit of Warren Buffett's conglomerate, will take full ownership by acquiring the remaining 8% stake from the family of late billionaire Walter Scott. The transaction includes $2.37 billion in cash, a $100 million bond, and an exchange of shares for Berkshire Class B shares.
This acquisition will increase Berkshire's ownership to 100% and is expected to be completed in the current quarter pending regulatory approvals. The purchase price, although lower than some expectations, allows Berkshire to deploy some of its $276.9 billion cash pile.
Analysts believe this acquisition makes sense for Berkshire, especially as U.S. Treasury yields are falling. However, the energy business has faced challenges, including wildfire litigation. Despite this, Berkshire Hathaway Energy remains a key player in the energy, utility, and pipeline sectors, as well as one of the largest U.S. residential real estate brokerages.
This strategic move further solidifies Berkshire's position in the energy sector and sets the stage for Greg Abel, Vice Chairman of Berkshire and leader of Berkshire Hathaway Energy, to potentially succeed Buffett as CEO in the future.
