INTERNEWSTIMES.COM – Warren Buffett’s Berkshire Hathaway has taken full control of Berkshire Hathaway Energy (BHE) after acquiring the remaining 8% stake from the heirs of Walter Scott. But the move comes as BHE has become a source of concern for the conglomerate due to its recent struggles.
The deal, which cost Berkshire $2.37 billion in cash, $600 million in debt, and a significant amount of Berkshire Class B shares, signals a drop in valuation for BHE. Analysts and investors believe the price reflects the challenges BHE has faced, including wildfires and a tough regulatory environment.
Buffett himself has expressed concerns about the future of the utility industry, citing staggering wildfire losses and unpredictable regulatory returns. BHE has been a weak spot for Berkshire, which has otherwise enjoyed strong performance in recent years.
The acquisition of BHE highlights the complexities of the utility sector and the strategic decisions that large conglomerates like Berkshire Hathaway must make. While Buffett has a long history of successful investments, the future of BHE remains uncertain. (Red)
