Sempra Energy announced Monday that the U.S. Bankruptcy Court for the District of Delaware has confirmed a reorganization plan for Energy Future Holdings, including the California company’s $9.45 billion acquisition of EFH and its 80% interest in Texas utility Oncor.
“Today’s action by the Bankruptcy Court paves the way for EFH to end its long-running bankruptcy case and advances our proposal to acquire a majority stake in Oncor to the final stage,” said Sempra CEO Debra Reed in a statement.
Sempra still needs to win the approval of the Texas Public Utility Commission, which is expected to consider an order approving Sempra and Oncor’s joint change-in-control application as early as March 8. The PUC on Feb. 20 canceled a hearing on Sempra’s proposed merger and asked staff to prepare a final order in the proceeding (Docket No. 47675). (See Sempra Moves Closer to Securing Oncor Acquisition.)
Sempra said it plans to close the transaction “soon” after PUC approval. The company became the fourth serious suitor to pursue Oncor, Texas’ largest electric utility, when it was able to shove aside Berkshire Hathaway Energy in August. (See Sempra Outmuscles Berkshire for Oncor.)
Previous acquisition attempts by Hunt Consolidated and NextEra Energy fell apart before the PUC.
EFH’s Texas roots are deep. It was known as Texas Utilities and then TXU before it was acquired in a 2007 leveraged buyout by EFH and its consortium of private-equity investors. The deal went sour when energy prices collapsed, and EFH filed for bankruptcy in April 2014.
In 2016, EFH disposed of its generation (Luminant) and retail (TXU Energy) businesses in a tax-free spinoff. The companies are now under the Vistra Energy umbrella. (See Luminant, TXU Energy Emerge from Bankruptcy.)
— Tom Kleckner
