(Reuters) -Brookfield Infrastructure Companions is shopping for Colonial Pipeline, the biggest U.S. gasoline transportation system, in a deal valued at about $9 billion, together with debt, the corporate mentioned on Thursday.
The deal to accumulate all belongings of Colonial Enterprises, together with Colonial Pipeline, is anticipated to shut within the second half of 2025.
Colonial’s pipeline system stretches over 5,500 miles from Houston in Texas to New York’s harbor. It strikes 100 million gallons of gasoline each day, together with gasoline, jet gasoline, diesel and heating oil, in accordance with its web site.
The flagship listed infrastructure firm of Brookfield Asset Administration may have an fairness funding of $500 million in Colonial Enterprises on the deal’s closing.
Shell mentioned late on Thursday it was promoting its curiosity in Colonial Enterprises to Colossus AcquireCo, a Brookfield subsidiary, for $1.45 billion.
Colonial’s house owners – together with Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Shell, and funding agency KKR – had begun exploring a sale of Colonial Pipeline final 12 months.
CDPQ purchased its stake in Colonial for $850 million in 2012 from ConocoPhillips. IFM Traders and KKR acquired their respective 15.8% and 23.4% holdings in 2007 and 2010.
Shell consolidated its 16.13% right into a single holding in 2019, whereas a subsidiary of Koch Industries has held its present 28.1% place since 2003.
Reuters reported earlier this week that Brookfield emerged because the winner of an public sale course of, which the 5 house owners of the pipeline have been operating over a number of months, to purchase Colonial Pipeline for greater than $9 billion together with debt.
(Reporting by Gnaneshwar Rajan in Bengaluru; Enhancing by Janane Venkatraman and Mrigank Dhaniwala)