Dominion Energy confirmed on Monday that it has abandoned its sale of its natural gas pipeline to a unit of Berkshire Hathaway due to uncertainty over whether or not antitrust regulators would approve it. The Warren Buffet-led Berkshire planned to acquire Dominion’s Questar Pipelines for $1.3 billion in cash as well as $430 million of debt.
This transaction was only part of the intended purchase of Dominion’s natural gas transmission and storage business. To date, Berkshire Hathaway has acquired more than 5,500 miles (8,850 km) of gas transmission pipelines and 775 billion cubic feet of gas storage. These purchases, which took place in November of 2020, cost $2.5 billion in cash as well as the assumption of $5.6 billion in debt.
Dominion plans to borrow money in order to repay the $1.3 billion loan from Berkshire Hathaway, which it intends to settle within one year. This comes after the company decided to sell its Questar Pipelines to another buyer. While the breakdown in sale has caused a disruption to Berkshire’s intended plan going forward, the conglomerate’s cash stake is expected to be boosted as a result.
In addition to the former Dominion assets, Berkshire Hathaway owns dozens of businesses including the likes of the Geico car insurer and BNSF railroad. It also holds shares in Apple Inc and the Bank of America.
