On Sunday, Dominion Energy, one of the largest energy companies in the United States, announced a final agreement to sell virtually all of its assets in the gas transportation and storage segment of Berkshire Hathaway Inc. under a deal valued at $9.7 billion, including its current debt of $5.7 billion.
The deal with Dominion will be Berkshire’s largest acquisition since its acquisition of industrial company Precision Castparts Corp. in 2016.
As of the end of March, Berkshire published a balance of available funds of $137.2 billion in cash.
The company of world-renowned investor Warren Buffett sold almost its entire stake in the largest US airlines in May saying it “does not see anything really attractive” to buy.
Berkshire Hathaway shares have fallen 21% since the beginning of the year. For the first quarter, the company posted a net loss of $49.75 billion, while a similar figure showed a net profit of $21.66 billion a year ago.
The agreement with Dominion confirmed Buffett’s ability to make profitable purchases “in crisis” and the practice of “buying in the bottom line” (when the price is understated and profitable). Natural gas futures prices in the US last month fell to the lowest level in 25 years due to the coronavirus pandemic. The prices have recovered slightly since then.
Under the terms of the agreement, Berkshire Hathaway Energy will acquire 100% of Dominion Energy Transmission, Questar and Carolina, as well as 50% of the Iroquois gas transmission system. Berkshire will also acquire 25% of Cove Point LNG, a liquefied natural gas (LNG) export, import and storage facility, one of six LNG export terminals in the United States.
The agreement is subject to regulatory approval and is expected to be completed in the fourth quarter of this year.
“We are very proud to add such a large portfolio of natural gas company assets to our already strong energy business,” said Warren Buffett commenting on the deal.
The agreement will turn Berkshire Hathaway Energy into one of the country’s largest natural gas transportation companies. It will account for 18% of all natural gas transportation in the country compared to 8% earlier.
Berkshire currently owns 91.1% of Berkshire Hathaway Energy’s energy division, which owns such energy companies as MidAmerican Energy, NV Energy and PacifiCorp, gas pipelines, wind energy assets and electricity companies in the UK and Canada.
In 2019, the energy division accounted for 12% of Berkshire’s operating profit, and its chairman, Greg Abel, is also Berkshire’s vice chairman.
To strengthen its market position, Dominion Energy has recently taken a number of steps to optimize its assets and investments through mergers with Questar Corporation and SCANA Corporation, as well as the sale of Blue Racer Midstream assets. Dominion has also refused to invest in a large eight-billion-dollar project to build a pipeline along the Atlantic coast with Duke Energy. The decision was made with reference to ongoing delays due to growing regulatory control and “cost uncertainty” which cast doubt on the economic viability of the investment.
The Dominion agreement with Berkshire also allows the energy company to achieve its profitability goals and implement a large long-term program to the transition of electricity production to zero carbon emissions.
A number of states, including New York, California and Virginia, the homeland of Dominion, have passed laws requiring utilities to move to zero carbon emissions by 2050.
Модний дім Gucci відкриє два флагманських магазина на люксовій онлайн-платформі для шопінгу Tmall Luxury Pavilion китайської компанії Alibaba, повідомляє Reuters з посиланням на спільну заяву сторін угоди. Це рішення підкреслює важливість китайського ринку для елітних брендів, які прагнуть зупинити падіння виручки на тлі пандемії коронавірусу, відзначає агентство. Платформа Tmall Luxury Pavilion була створена в 2017 […]
Кращою основною валютою світу 2020 року експерти назвали шведську крону. Це сталося завдяки політиці Riksbank, який не став знижувати ставки для пом’якшення удару, нанесеного по економіці Швеції пандемією коронавірусу, пише Bloomberg. Швидке відновлення шведської крони з весняного мінімуму допомогло їй стати кращою основною валютою і другою кращою валютою світу після гаїтянського гурда. Riksbank став першим […]
Європейський центральний банк увіллє в економіку єврозони ще більше грошей, пише CNBC 11 грудня. Регулятор оголосив про розширення і продовження програми кількісного пом’якшення через пандемію коронавірусу. Тепер обсяг програми складе 1,85 трильйона євро, що на 500 мільярдів більше попередніх планів. Крім того, програму продовжать на дев’ять місяців, до березня 2022 року. Кошти будуть емітовані для […]
By the end of this year, the German airline Lufthansa intends to reduce its foreign staff by 20 thousand people, as well as sell its LSG division, which deals with on-board catering, which employs 7.5 thousand people. Lufthansa subsidiaries Eurowings, Swiss, Austrian and Brussels Airlines are reducing the frequency of flights, fleets and staff amid […]
Євросоюз відклав проведення Ради асоціації Україна-ЄС, яка мала відбутися восьмого грудня в режимі онлайн. Засідання мали намір провести в очному форматі, а не у форматі відеоконференції. Про це повідомляє DW з посиланням на власне джерело в структурах ЄС. Раніше засідання планувалося провести у форматі відеоконференції через пандемію коронавірусу. Така зустріч у віртуальному форматі була б […]
Американські компанії, які не надають фінансові послуги, станом на червень накопичили $ 2,12 трлн грошових коштів. Це майже на третину більше, ніж в кінці минулого року, і на 6% перевищує попередній максимум в $ 1,99 трлн, зареєстрований в 2017 році, пише газета Financial Times з посиланням на дослідження рейтингового агентства Moody’s. Найбільшими власниками грошових коштів […]
Інвестиційна компанія Уоррена Баффета Berkshire Hathaway в третьому кварталі 2020 року вклала $ 5,7 млрд в чотири американські фармацевтичні компанії, пише Financial Times з посиланням на документ, поданий до Комісії з цінних паперів і бірж США. Компанія купила 21,3 млн акцій AbbVie, 30 млн акцій Bristol-Myers Squibb, 22,4 млн акцій Merck і 3,7 млн акцій […]
Уряд Великобританії направить на оборонні витрати додаткові £ 16,5 млрд протягом чотирьох років, йдеться в поширеній канцелярією прем’єр-міністра королівства Бориса Джонсона промові. Про це повідомляє ВВС. Наголошується, що ці гроші підуть на фінансування космічних і кіберзахисних проєктів, таких як агентство штучного інтелекту. Це менше, ніж потрібно армії для вирішення всіх її поточних проблем, зазначає ЗМІ, […]
Good news from products company Lantmannen AXA was not long in coming! Company asked consumers: “What ingredients do you add most often to granola?” One of the most popular answers is nuts. We launched Super nuts Granola! The design has acquired the corporate style of the AXA Granola line. In combination with oatmeal, crispy honey […]
Next
The world’s largest producer of alcohol, the British Diageo has initiated arbitration proceedings with the French luxury goods manufacturer LVMH Moet Hennessy – Louis Vuitton SA due to non-payment of dividends in the amount of 181 million euros in 2019. Diageo owns 34% in the joint venture with LVMH for the production of alcoholic beverages […]
Next
International Court of Arbitration in New York in a dispute between the UMH – the Ukrainian publisher of “Forbes Ukraine” magazine, and the Forbes Media, LLC American publishing house ruled in favor of the latter on April, 20, and revoked the license of Forbes Ukraine, said in Forbes Media, LLC to the publication LІGA.net UMH […]
Next
Ukrainian citizens have started receiving National Cashback payments for August, which have reached a record amount since the program’s launch, according to the press service of the Diia app. The total payout amounted to ₴509 million, distributed among more than 3.6 million Ukrainians. These are funds citizens earned by purchasing domestically made goods — in […]
Next
On Thursday, Advanced Micro Devices Inc. has introduced the long-awaited line of four next-generation Ryzen 5000 series CPUs for the desktop PCs, based on the new Zen 3 architecture. Ryzen 5000 series products are based on the 7-nm manufacturing process of the Taiwan Semiconductor and designed for the computer gamers and the content creators. AMD […]
Next
The US Federal Aviation Administration (FAA) has ordered the state airline to inspect about 2,500 Boeing 737 aircraft for defective relays and cabin pressure drops. “An undetected failure of both relays could slow the crew’s detection of insufficient cabin pressure and result in the crew losing their ability to work due to hypoxia and, as […]
Next
The European Bank for Reconstruction and Development (EBRD) has revised down its forecast for Ukraine’s real GDP growth in 2025 from 3.3% to 2.5%, while keeping its 2026 forecast unchanged at 5.0%, conditional on the end of the war with Russia. The update was published in the EBRD’s latest economic report. “Ukraine’s GDP growth is […]
Next
Ukraine will allocate 2.6 billion hryvnias for the purchase of a coronavirus vaccine. This was stated by Finance Minister Serhiy Marchenko at the press conference on Monday, September 14. “By 2023, we have a real opportunity to ensure health care spending at 5%. There is an increase in 2021 to 4.2% of GDP for health […]
Next
OnlyFans owner Leonid Radvinsky has received record dividends of $701 million, Bloomberg reports. The record payout was revealed in filings from London-based Fenix International Ltd., which operates the platform, amid speculation about a possible sale of the business valued at up to $8 billion. As of the end of 2024, transactions on the platform reached […]
Next
Recently, the Antimonopoly Committee of Ukraine allowed the company NAP II Holdings B.V. (Netherlands), controlled by the NCH Capital (USA) to acquire more than 50% of the shares of two agricultural enterprises in the Khmelnitskyi region. This is stated on the AMCU website. The permission granted for the purchase of the shares of the companies […]
Next
This year, Russia is selling gas to China at a nearly 40% discount, according to The Moscow Times, citing data from Russia’s Ministry of Economic Development. In the ministry’s baseline forecast, the average price of Russian gas for exports to distant foreign markets (excluding China)—namely Turkey and the remaining European countries—will amount to $356.7 per […]
Next
The owner of the largest online store Rozetka.ua, Vladislav Chechetkin accused the retailer “Epicenter” which is developing a network of building supermarkets, in the non-competitive behavior and pressure on suppliers. “Epicenter” for a long time, probably two years, requires the suppliers not to sell the goods in Rozetka.ua. This solicitation sounds like: if your product […]
Next
According to the preliminary information, the official start of the Uber in Ukraine will take place in Kiev in the first quarter of this year and perhaps in Lviv. As told L?GA.net consultant on site Uberlin (the mediator of the company), a preliminary recruitment of drivers is opened. “Our company has experience with Uber in […]
Next
Global trade turnover in 2020 will decrease by 7-9%. This was announced on Wednesday, October 21, by the RBC-Ukraine news agency with reference to the report of the UN Conference on Trade and Development UNCTAD. The decline in trade has occurred in all regions of the world due to quarantine restrictions, the report said. They […]
Next
In December, Volkswagen expects more changes. December 7, 2015 the company went to Qatar, where they had meeting with one of its main investors, Qatar Investment Authority. Volkswagen representative Eric Felber pointed out that the visit is devoted to restructuring and improving the management and the most important shareholders should express their opinion on this […]
Next
Participating FIS client banks will be able to send and receive large-ticket international corporate payments quickly and securely KYIV – May 15, 2019 – Visa Inc. (NYSE:V) and FIS are joining forces to enable FIS’ commercial financial institution clients to quickly and securely access the Visa B2B Connect platform globally*. Visa B2B Connect will be […]
Next
