October 31, 2016 / 11:45 AM / 2 years ago

NextEra Energy to buy rest of Oncor for about $2.4 billion

(Reuters) - Power producer NextEra Energy Inc (NEE.N) said on Monday it would buy the remaining stake in Oncor Electric Delivery Co [TXEFHO.UL] for about $2.4 billion in cash.

The company said it would buy the about 20 percent indirect stake owned by Texas Transmission Holdings Corp.

NextEra said in July it would buy bankrupt Texas power company Energy Future Holdings Corp’s 80 percent indirect stake in Oncor in a deal valued at about $18.4 billion.

That deal, which is expected to close in the first quarter of 2017, provides NextEra access to the largest network of power lines in Texas.

NextEra also said on Monday it would acquire a 0.22 percent stake from Oncor Management Investment LLC for about $27 million. Oncor is prized for its steady cash flow.

The company said it expected to fund the deal with Texas Transmission through a combination of debt and equity.

NextEra Energy expects the deal to close in the first half of 2017.

Skadden, Arps, Slate, Meagher & Flom LLP is the legal adviser to Texas Transmission.

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