$10 billion NV Energy merger complete
The $10 billion merger of NV Energy and MidAmerican Energy Holdings Co., which is partially owned by Warren Buffett, was completed today after the companies received final state and federal regulatory approvals.
The Public Utilities Commission of Nevada, the Federal Energy Regulatory Commission and the U.S. Department of Justice have cleared the merger.
NV Energy will operate as a separate, locally managed company, and will continue to be headquartered in Las Vegas. It will continue to serve its 1.3 million electric and natural gas customers in Nevada.
“NV Energy will remain a Nevada company, committed to the people of this state and the communities we serve,” said NV Energy CEO Michael Yackira. “I’ve had a chance to work with the MEHC team, and they strongly complement our values and priorities. Our employees will now be able to tap into the significant resources of a larger organization that is a top performer in customer service, and has valuable experience in environmental stewardship and renewable energy. This is a solid fit as we continue to help shape Nevada’s energy future.”
NV Energy will continue to be led by Yackira, who announced his retirement effective June 2014. Paul Caudill, who most recently served as president of MidAmerican Solar, is joining NV Energy as president, effective immediately. Caudill will work with Yackira and the local leadership team at NV Energy as part of an executive transition over the next six months.
MEHC and NV Energy announced on May 29, 2013, that they had reached a definitive agreement pursuant to which MEHC has purchased all outstanding shares of NV Energy’s common stock, for $23.75 per share in cash. The transaction was unanimously approved by both companies’ boards of directors, received the requisite approval of NV Energy’s stockholders, and equates to an enterprise value of approximately $10 billion for NV Energy.
The Nevada approval was obtained after achieving a multi-party agreement in the state proceeding. The agreement includes a one-time bill credit to customers of NV Energy, totaling $20 million, which will begin to be applied within the next 30 days.
“We are very pleased to join forces with NV Energy and help them provide the best energy services for Nevada customers,” said MidAmerican Chairman, President and CEO Greg Abel. “This partnership combines the strengths of two companies that share a common goal of serving our customers well through operational excellence and enhancing value for the communities we serve. Together, we will have the resources and strength to help ensure that NV Energy provides industry-leading customer service, today and in the future, for the people of Nevada. I’m confident that with the legacy Michael Yackira and his team have created and Paul Caudill’s leadership going forward, NV Energy will continue to produce great results for Nevada.”
Customer service is one of the six core principles shared by the MidAmerican family of energy companies. MidAmerican was ranked No. 1 in 2013 among electric utility holding companies in the U.S. for overall customer satisfaction in the large commercial and industrial customer segments. The survey was conducted by TQS Research, Inc.