- Warren Buffett is expanding his reach in the energy industry. Wednesday, Berkshire Hathaway's MidAmerican Energy announced its buy of Nevada electric and natural gas company NV Energy Inc. for $5.6 billion.
- The buy will help MidAmerican continue its investment in renewables by developing projects with Nevada's vast solar, wind and geothermal resources. The move will also expand MidAmerican's customer base by over one million to 8.4 million worldwide and boost its assets to $66 billion.
- "This is a great fit for Berkshire Hathaway, and we are pleased to make a long-term investment in Nevada's economy," Buffett said in a statement Wednesday. "We have found in NV Energy a great company with similar values, outstanding assets, and a superb management team."
From the article:
"Utility companies also have been slowly consolidating in recent years in the face of weak electric demand and rising costs, related to upgrading aging infrastructure and making power generation cleaner to meet tighter environmental regulations. The hope is to lower borrowing and other costs in an effort to maintain profitability"