Berkshire acquisition
Berkshire’s energy division will pay $ 4 billion in cash to Dominion for the purchase.
The transaction between the two companies also assumes an existing debt of approximately $ 5.7 billion for Dominion’s gas transmission and storage business, giving the business a business value of $ 9.7 billion.
The assets Berkshire buys include more than 7,700 miles of natural gas transmission lines, with approximately 20.8 billion cubic feet per day of transportation capacity. It also includes around 900 billion cubic feet of gas storage.
The Nebraska-based conglomerate holding company increased its cash holdings to a record $ 137.3 billion during the first quarter of this year, as the company contained new acquisitions during the new coronavirus pandemic (COVID-19). .
The acquisition is expected to close in the first quarter of this year, subject to regulatory approval, the statement said.
Dominion kills Atlantic coast pipeline project
The pipeline has been abandoned even after the favorable decision of the United States Supreme Court last month. The project has faced major protests from landowners on the way to the pipeline and environmental activists.
“This announcement reflects growing legal uncertainty that outpaces the development of large-scale industrial and energy infrastructure in the United States,” Dominion Chief Executive Thomas Farrell said in a statement.
“Until these problems are resolved, the ability to meet the country’s energy needs will be significantly challenged.”
The pipeline that was to run from West Virginia to eastern North Carolina through Virginia was estimated to cost $ 8 billion.
Price action
Dominion shares closed almost 0.5% higher at $ 82.69 on Thursday. Berkshire Class A shares closed 0.2% higher at $ 267,551, and Class B shares closed almost 0.5% higher at $ 178.83 the same day.
Duke Energy closed 0.1% lower at $ 81.84 per share.
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