Berkshire Hathaway to buy Dominion Energy gas assets for $10 billion
Commodities have always remained popular amongst investors even against the background of market jitters, including the COVID-19 pandemic. According to analysts, shares of oil and gas companies are in high demand especially in times of crisis. For this reason, Warren Buffett, an American investor and business tycoon, has decided to buy shares of one of such companies.
Warren Buffett's Berkshire Hathaway Inc. said on Sunday, July 5, it would buy Dominion Energy Inc. gas pipeline and storage assets for $4 billion. Dominion Energy is the second-biggest US Power Company by market value engaged in the transportation and storage of natural gas.
What is more, the list of assets acquired by Berkshire Hathaway includes more than 12,390 km of natural gas transmission lines and 900 billion cubic feet of gas storage.
In addition, Berkshire Hathaway unit will also assume Dominion Energy's $5.7 billion debt. According to preliminary calculations, the total amount of the transaction, including debt, will come in at $9.7 billion. "We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business," Buffett said. The agreement is planned to be signed in the fourth quarter of this year.