Under the terms of the agreement, Sempra will acquire Energy Future Holdings (EFH), the indirect owner of 80% of Oncor, which is an operator of electric transmission and distribution system in Texas.
Sempra Energy has also committed to support Oncor's plans to invest $7.5bn over a five-year period to expand and strengthen its transmission and distribution network.
Sempra Energy chairman, president and CEO Debra Reed said: “With its strong management team and long, distinguished history as Texas' leading electric provider, Oncor is an excellent strategic fit for our portfolio of utility and energy infrastructure businesses.
“We believe our agreement with Energy Future will help ensure that Texas utility customers continue to receive the outstanding electric service they have come to expect from Oncor and provide stability to Oncor's nearly 4,000 employees."
The transaction is subject to customary closing conditions, including approvals from the Public Utility Commission of Texas, US Bankruptcy Court of Delaware, Federal Energy Regulatory Commission and the US Department of Justice under the Hart-Scott-Rodino Act.
It is expected to be completed in the first half of 2018.
With Sempra striking the deal, Berkshire Hathaway Energy announced that EFH has terminated its proposal to acquire Oncor.
Berkshire Hathaway Energy chairman, president and CEO Greg Abel said: “We are disappointed our agreement to acquire Oncor has been terminated.”
In July, the subsidiary of Warren Buffett’s Berkshire Hathaway agreed to acquire Dallas-based reorganized EFH for $9bn in cash.
Headquartered in Dallas, Texas, Oncor is an electric transmission and distribution service provider that serves 10 million customers across Texas. Its distribution and transmission system consists of about 122,000 miles of lines and more than 3.4 million meters.
Image: Electric power transmission with overhead line. Photo courtesy of Guam~commonswiki/Wikipedia.