Buffett picks up Las Vegas-based NV Energy for $5.6 billion

Wed May 29, 2013 5:17pm EDT

Berkshire Hathaway shareholders walk by a video screen at the company's annual meeting in Omaha May 4, 2013. REUTERS/Rick Wilking

Berkshire Hathaway shareholders walk by a video screen at the company's annual meeting in Omaha May 4, 2013.

Credit: Reuters/Rick Wilking

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(Reuters) - Berkshire Hathaway Inc's (BRKa.N) power production unit MidAmerican Energy will pay $5.6 billion for NV Energy Inc NVE.N, the electric utility that serves Las Vegas and its power-hungry casinos.

MidAmerican Energy Holdings Co will purchase NV Energy's common stock for $23.75 per share, a 23 percent premium to NV's Wednesday closing price.

"This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in Nevada's economy," Berkshire Hathaway Chairman Warren Buffett said in a statement.

Las Vegas-based NV Energy, which serves about 2.4 million people in Nevada, said last month it would accelerate the retirement of its coal-fired power generating facilities and the construction of natural gas and renewable power plants.

"By joining forces with MidAmerican, we will gain access to additional operational and financial resources," NV Energy Chief Executive Michael Yackira said.

Once the deal is complete, MidAmerican Energy will have assets of about $66 billion and its regulated electric and gas utilities will serve 8.4 million customers.

(Reporting By Thyagaraju Adinarayan; Editing by Don Sebastian)

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Comments (1)
AlkalineState wrote:
A utility in Vegas. I like it. As a population depletes its water supply, the only fixes are to pump more and treat more. Both fixes require major inputs of electricity.

May 29, 2013 5:15pm EDT  --  Report as abuse
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