Dominion Energy and Warren Buffett's Berkshire Hathaway Energy have agreed to terminate a planned sale of Questar Pipelines.

Ticker Security Last Change Change % BRK.A BERKSHIRE HATHAWAY, INC. 422,028.41 +28.41 +0.01%D DOMINION ENERGY, INC. 75.51 +0.01 +0.01%

Dominion cited "ongoing uncertainty associated with achieving clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976" as the reason for the termination.  

Representatives for the FTC and Berkshire Hathaway Energy declined to comment further.

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Dominion said Monday's announcement has no impact on the sale of gas transmission and storage assets to Berkshire Hathaway Energy.

Berkshire entered into an agreement last year to purchase Dominion's natural gas transmission and storage network for $4 billion, including more than 7,700 miles of natural gas transmission lines and 900 billion cubic feet of gas storage, according to Reuters

The asset sale, which represents approximately 80% of the original transaction value for Questar Pipelines, was completed in November 2020.

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Additionally, the terminated sale will not change Dominion's existing financial guidance, the company said, noting it will "continue to account for Questar Pipelines as discontinued operations."

The company intends to enter into a 364-day term loan, which will be used to repay Berkshire for its approximately $1.3 billion transaction deposit. The loan is expected to be repaid from the proceeds of a Questar Pipelines sale to an alternative buyer. 

Dominion noted it is "commencing a competitive process for the sale of Questar Pipelines," with a target close by the end of 2021. 

Source Link:
https://www.foxbusiness.com/markets/dominion-energy-berkshire-hathaway-energy-terminate-questar-pipeline-sale

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