26th Jul 2022 07:02
(Alliance News) - Shell PLC on Tuesday said its subsidiary Shell USA Inc is buying a majority stake in Shell Midstream Partners LP from Shell USA's subsidiary.
Shell USA is to acquire all of the common units representing limited partner interests in Shell Midstream Partners held by the public. Shell USA will purchase this at USD15.85 each in cash, in a deal worth USD1.96 billion, the companies said.
A subsidiary of Shell USA currently owns 269.5 million, or a 68.5% stake, of Shell Midstream Partners common units.
The deal is expected to close in the fourth quarter. Shell USA's subsidiary has agreed to the transaction so it is not seeking any other shareholder approval.
"Shell Midstream Partners's assets include interests in entities that own crude oil and refined products pipelines and terminals that serve as key infrastructure to transport onshore and offshore crude oil production to US Gulf Coast and Midwest refining markets and deliver refined products from those markets to major demand centres, as well as storage tanks and financing receivables that are secured by pipelines, storage tanks, docks, truck and rail racks and other infrastructure used to stage and transport intermediate and finished products," Shell PLC said.
By Tom Budszus; tombudszus@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Shell