Sempra will pay approximately $9.45 billion in cash to acquire EFH and and its ownership in Oncor, and will assume Oncor’s debt. The deal marks a surprise turnround after Warren Buffett’s Berkshire Hathaway looked to buy the group in an an $18bn pact. The FT reported early on Monday that Sempra was set to clinch the deal.

Sempra said it would fund the deal using a mixture of debt, equity, and $3bn of investment grade debt at the reorganised holding company, and it expects Oncor’s “underlying financial strength and credit ratings” to improve after the deal.

At the completion of the transaction, Bob Shapard, Oncor’s chief executive, will become executive chairman of the Oncor board of directors and Allen Nye, currently Oncor’s general counsel, will succeed Mr Shapard as Oncor’s CEO.

The deal is expected to close in the first half of 2018, and should be accretive to earnings from next year.

“Both Sempra Energy and Oncor share more than 100 years of experience operating utilities that deliver safe, reliable energy to millions of customers,” said Debra Reed, chairman and chief executive of Sempra Energy. “With its strong management team and long, distinguished history as Texas’ leading electric provider, Oncor is an excellent strategic fit for our portfolio of utility and energy infrastructure businesses.”