(VNExpress) Buying assets of Dominion Energy is Berkshire’s first deal since the US was dragged into recession due to the pandemic.
Berkshire Hathaway – the investment company of billionaire Warren Buffett yesterday (July 5) announced the acquisition of storage and transportation of natural gas from Dominion Energy. Berkshire will pay USD 4 billion in cash while taking over USD 5.7 billion of Dominion Energy’s debt. The total deal value is nearly USD 10 billion.
Berkshire Hathaway decided to secure the interests of sold employees at Dominion. The deal is scheduled to be concluded in the fourth quarter of this year and is now awaiting official approval.
Billionaire investor Warren Buffett in an event
Photo: Reuters
This is the first offer Berkshire has made since a pandemic plunged the US into recession. Previously, investors always wondered whetherthis giant empire would make new investments during the economic downturn. In May, Buffett shared that the firm had USD 137 billion in cash, but “still didn’t do anything because didn’t find it fascinating.”
The deal is part of several steps for Dominion to break away from gas transportation and focus solely on renewable fuel. The enterprise, which has its headquarters in Virginia (USA), is one of the largest distribution firms in supplying coal, delivering power and gas to about 7 million customers in 20 states.
The deal would help Berkshire expand its new energy business, adding 12,400 km of pipelines for natural gas transport and storage. The company currently provides gasoline supplies to over 12 million electric and gas consumers all over the world.