NextEra Energy Inc. agreed to buy Energy Future Holdings Corp.'s stake in Oncor, in a deal that values the electricity transmissions business at $18.4 billion, Dow Jones Newswires reported on Friday. The transaction will be a crucial element in getting Energy Future — the former TXU Corp. — out of chapter 11 bankruptcy, which began in April 2014. Meanwhile, the deal for Oncor makes NextEra, of Florida, a major player in the Texas electricity market. The deal includes the equity of the reorganized holding company Energy Future and certain of its subsidiaries as well as the majority stake in Oncor. NextEra began the competition for Oncor two years ago, when Energy Future's case was bogged down in court fights. Investors spotted the hidden value in the transmissions business, which was operating free and clear of Energy Future's financial troubles, and was originally slated to be handed over to certain creditors in satisfaction of their debt. The NextEra deal must go before the Public Utility Commission of Texas for approval, but it doesn't include the component that scuttled the Hunt takeover, which was a proposal to convert Oncor into a real-estate investment trust structure. The deal also must be approved by a bankruptcy judge as part of Energy Future's plan to exit bankruptcy.
