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Buffett's Berkshire Buys NV Energy for $5.6 Billion

Lisa Valder | E+ | Getty Images

A subsidiary of Warren Buffett's Berkshire Hathaway is buying Nevada's largest electric utility for $5.6 billion in cash.

MidAmerican Energy said it will pay $23.75 a share for NV Energy.

That's a 23 percent premium to the stock's close on Wednesday, sending shares sharply higher in after-hours trading.

(Click here for the latest NV Energy stock quote.)

NV Energy has about 1.3 million electric and natural gas customers in Nevada. It said it will operate as a separate company using its current name. Headquarters will remain in Las Vegas.

In a news release, Buffett is quoted as saying NV Energy is a "great fit" for Berkshire, calling it "a great company with similar values, outstanding assets, and a superb management team."

The deal still needs to be approved by NV Energy's shareholders and government regulators. It is expected to close in the first quarter of 2014.

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