Berkshire Hathaway Acquires Remaining Stake in Utility Unit

Warren Buffett's Berkshire Hathaway is set to acquire the remaining 8% of its utility unit from the estate of longtime board member Walter Scott. The transaction involves $2.4 billion cash and the issuance of Class B Berkshire shares equivalent to 1.6 million utility shares. While the utility's shares are not publicly traded, the deal will result in Berkshire owning 100% of its utility business, encompassing MidAmerican Energy, Pacificorp, NV Energy in Nevada, and Canada's AltaLink.

CFRA Research analyst Cathy Seifert expressed her curiosity about the deal, noting, "I don't expect those questions to be answered." Without any press release or SEC filing, the exact value of the transaction remains speculative. Investors, however, draw comparisons with Berkshire's $870 million buyout of Vice Chairman Greg Abel's 1% utility stake two years ago, estimating the current deal could be worth around $6.96 billion.

Despite high wildfire-related losses from PacifiCorp, Buffett's conglomerate appears resilient. With more than $30.3 billion in earnings and $277 billion in cash reported in the second quarter, Berkshire's varied portfolio—spanning utilities, railroads, insurance, and retail brands like Geico and Dairy Queen—reinforces its robust financial standing. The deal with the Scott family is expected to close later this year, but the exact valuation remains uncertain amidst Buffett's well-known reticence in disclosing details. (This story was generated by Newser's AI chatbot. Source: the AP)