NV Energy has been sold to MidAmerican Energy Holdings Co., a subsidiary of Warren Buffett’s Berkshire Hathaway Inc., for $5.6 billion.
MidAmerican is purchasing all outstanding shares of NV Energy’s common stock for $23.75 a share. According to MarketWatch, the announcement prompted the trading value of NV Energy shares to jump more than 20 percent.
The announcement states that NV Energy’s current management, including President and CEO Michael Yackira, will remain with the company operating as a separate corporate subsidiary of MidAmerican.
“This is a great fit for Berkshire Hathaway,” Buffett said. “And we are pleased to make a long-term investment in Nevada’s economy.”
“Importantly, we will have the opportunity to combine MidAmerican’s expertise in renewable energy with Nevada’s vast renewable resources for the benefit of our customers and our state,” said Yackira in a statement.
NV Energy provides electric and natural gas utility service to 1.3 million Nevada customers.
Sen. Harry Reid, D-Nev., also praised the announcement.
“It is not often I have been as enthused about a deal as I am now,” he said.
Reid said Buffett wants to invest $5.5 billion in Nevada.
“He told me that he loves Nevada and now has an excuse to come here more often,” Reid said.
The acquisition is subject to closing conditions, including the approval of NV Energy’s shareholders along with state and federal approvals. When completed, MidAmerican will have assets of $66 billion and provide service to 8.4 million customers.
NV Energy provides electric service in Carson City but natural gas is provided by Southwest Gas.