By Dave Sebastian
Dominion Energy Inc. has agreed to scrap the planned sale of Questar Pipelines to a Berkshire Hathaway Inc. affiliate, the companies said.
The companies on Monday said they decided to terminate the sale due to ongoing uncertainty related to achieving clearance from the Federal Trade Commission.
The decision doesn't affect the sale of gas transmission and storage assets to Berkshire Hathaway Energy completed in November 2020, the companies said. That sale reflected about 80% of the original transaction value, the companies added.
Dominion Energy said it is starting a competitive sale process for Questar Pipelines, with a target close of the end of 2021. The company said the deal's termination doesn't change its existing financial guidance. It said it would continue to account for Questar Pipelines as discontinued operations.
Dominion Energy said it intends to enter into a 364-day term loan and use proceeds from the loan to repay the roughly $1.3 billion transaction deposit made by Berkshire Hathaway Energy. It expects to repay the loan by the end of 2021 with proceeds from the sale of Questar Pipelines to an alternative buyer.
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(END) Dow Jones Newswires
July 12, 2021 07:55 ET (11:55 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.