Berkshire Hathaway’s MidAmerican Energy Company, a subsidiary of Berkshire Hathaway Energy, is rumored to be a bidder for Australian utility Endeavour Energy.
Endeavor Energy is a government owned electricity distributor that supplies electricity to 2.4 million people in households and businesses across Sydney’s Greater West, the Blue Mountains, Southern Highlands, the Illawarra and the South Coast.
A fifty-percent interest in Endeavor is being sold in a Deutsche and UBS-run auction, and there are currently three consortiums in the bidding.
However, a fourth consortium made up of MidAmerican Energy, Colonial First State and Canadian Pension Plan Investment Board is rumored to also be interested.
Berkshire Hathaway Energy is already active in the Australian energy market. It owns CalEnergy, which is currently drilling for natural gas in Australia’s Whicher Range gas field.
© 2017 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.