Californian utility group Sempra Energy has agreed to buy Texas-based utility firm Oncor Electric Delivery in a $18.8bn deal.
Sempra was able to outflank Warren Buffett´s Berkshire Hathaway, which last month offered $18bn to acquire Oncor´s bankrupt parent company Energy Future.
Creditors for Energy Future had argued that Buffett´s offer undervalued the business.
Sempra will pay around $9.45bn in cash to purchase Energy Future, which owns 80% of Texas-based utility Oncor. Sempra will also assume a similar amount in debt as part of the agreement, with the deal worth $18.8bn in total.
Sempra pledged to maintain the existing independence of Oncor's board of directors.
"Our proposal will help bring a satisfactory resolution to Energy Future's bankruptcy case, keep Oncor financially strong, and protect Oncor customers, while addressing the needs of Texas regulators, creditors and the US Bankruptcy Court," said Debra L. Reed, chairman, president and CEO of Sempra Energy.
Sempra, which last year achieved revenues of over $10bn, claimed the deal would begin to enhance its earnings from the beginning of 2018.
Reed said the acquisition would serve as “a platform for future growth in the Texas energy market and US Gulf Coast region.”
The Californian utility group has also promised to continue Oncor's existing plans to invest $7.5bn in developing its transmission and distribution network.
Elliott Management, a key creditor of Energy Future, opposed an earlier offer from Berkshire Hathaway.
Elliott previously acquired around $60m of Energy Future´s debt from Fidelity Investments, which provided it with the necessary clout to block the deal.