Warren Buffett’s Company Abandons $1.3 Billion Pipeline Deal

Berkshire Hathaway Inc. is set to abandon its purchase of a natural gas pipeline from Dominion Energy due to uncertainty surrounding whether or not the deal could receive regulatory approval.

Warren Buffett’s multi-billion dollar company will receive a $1.3 billion refund on the proposed purchase of Questar Pipelines. The deal would also have included a $430 million of Dominion Energy’s debt when the deal was announced last year. Dominion Energy has said it still plans to sell Questar Pipelines and will seek out another suitable buyer by the end of the year. The energy company remains certain that the decision won’t impact its financial outlook. 

In the past, Berkshire Hathaway has made separate purchases from Dominion Energy, buying $2.7 billion worth of natural gas transmission and storage assets last year. However, the company’s decision to abandon the purchase of the Questar pipeline reduces the value of one of its largest deals from last year. Berkshire Hathaway has recently struggled to find appropriate acquisitions to utilise its growing $145.4 billion cash pile. Since the start of 2020, Berkshire Hathaway has invested approximately $38 billion into its own stocks.

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