May 31, 2013

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Deal of the Day: Berkshire Hathaway (NYSE:BRK.A) and NV Energy Inc. (NYSE:NVE)

Deal of the Day: Berkshire Hathaway (NYSE:BRK.A) and NV Energy Inc. (NYSE:NVE)

Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) energy unit will consolidate a western expansion started in 2005, with its intended $5.6 billion takeover of Nevada’s biggest utility, possibly reigniting purchasers in the sector.

MidAmerican Energy Holdings Co.’s takeover of Las Vegas-based NV Energy Inc. (NYSE:NVE), declared on Thursday, would make it the biggest US utility owner, with 8.4 million users, as per reported by data compiled by Bloomberg.

How shares of Berkshire Hathaway reacted after such news? Find out here

The Berkshire Hathaway Inc. (BRK/A) unit decided to pay $23.75 per share, which shows 23 percent more than NV Energy’s $19.28 ending price yesterday, the firms reported in a statement.

Buffett, Berkshire’s chief executive officer and chairman, has been enhancing investments in capital-intensive businesses, as he intends to allocate funds at his Omaha, Nebraska-located firm, which had $49.1 billion in cash as of March 31.

How shares of NV Energy reacted after such news? Find out here

MidAmerican will have assets of almost $66 billion, following the completion of the agreement, which is predicted in the first quarter of the coming year, as per reported by the statement.

NV Energy shares jumped up 23 percent, to $23.62, at the end in New York, the most in 10 years. The firm had rallied 12 percent in the last year through yesterday, lagging the 20 percent hike for the Standard & Poor’s Midcap Utilities Index. Berkshire shares jumped up 1.7 percent, to end at a record $172,200.

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