Warren Buffett's Berkshire Hathaway acquiring Texas grid giant Oncor

Nathan Bomey | USA TODAY

Billionaire investor Warren Buffett's Berkshire Hathaway is expanding its energy business with the $9 billion acquisition of the parent company of Texas electrical grid giant Oncor.

The investment firm's subsidiary, Berkshire Hathaway Energy, said Friday it had agreed to buy Energy Future Holdings Corp., which is still reorganizing its operations through a massively complex bankruptcy.

EFH's primary asset is its power-transmission unit, Oncor, which serves more than 10 million customers in Texas.

“Oncor is an excellent fit for Berkshire Hathaway, and we are pleased to make another long-term investment in Texas – when we invest in Texas, we invest big!” Buffett said in a statement. “Oncor is a great company with similar values and outstanding assets.”

Berkshire said it expects the deal to be completed in the fourth quarter.

Adding Oncor expands the portfolio of Berkshire Hathaway Energy CEO Greg Abel, who is widely seen as a possible successor to Buffett.

The deal also deepens Berkshire's bet on basic U.S. infrastructure, notably including railroads and industrial manufacturing.

Oncor CEO Bob Shapard will become chairman of the grid company, and Senior Vice President Allen Nye will become CEO in a previously announced transition that Berkshire is maintaining.

The plan aligns with Buffett's strategy of empowering existing management teams of the companies he acquires.

Dallas-based Oncor has more than 122,000 miles of transmission and distribution lines, more than 3.4 million energy meters and more than 3,700 employees.

The deal would require approval from a federal bankruptcy court that's overseeing the reorganization of Energy Future.

It would also require the permission of the Public Utility Commission of Texas, which had rejected Florida utility owner NextEra's bid to buy Oncor earlier this year.

Contributing: Roger Yu

Follow USA TODAY business reporter Nathan Bomey on Twitter @NathanBomey.