Summary
NextEra Energy, Inc. (NEE) has entered into a material definitive agreement to acquire Texas Transmission Holdings Corporation (TTHC) for approximately $2.4 billion in cash. TTHC, through its subsidiary, holds a 20% interest in Oncor Electric Delivery Company LLC (Oncor). This acquisition, combined with NEE's previously announced agreement to acquire Energy Future Holdings Corp. (EFH) and a separate agreement to purchase an additional 0.22% interest in Oncor, aims to give NEE 100% ownership of Oncor, a significant electricity transmission and distribution utility. The transactions are subject to regulatory approvals, including from the Public Utility Commission of Texas and the Federal Energy Regulatory Commission, and are expected to close in the first half of 2017.
Key Highlights
- 1NEE to acquire Texas Transmission Holdings Corporation (TTHC) for approximately $2.4 billion cash.
- 2The TTHC acquisition grants NEE a 20% stake in Oncor Electric Delivery Company LLC (Oncor).
- 3Combined with existing EFH acquisition and a smaller Oncor interest purchase, NEE aims for 100% ownership of Oncor.
- 4Acquisition is contingent upon regulatory approvals from Texas PUC, FERC, and other third parties.
- 5The transaction is expected to be funded through a mix of debt and equity, maintaining NEE's credit ratings.
- 6Closing of the TTHC transaction is anticipated in the first half of 2017.
- 7NEE also agreed to acquire an additional 0.22% interest in Oncor for approximately $27 million, contingent on the EFH acquisition closing.