July 31, 2022 [Petrol Plaza] – The $1.96 billion transaction includes SHLX’s crude oil and refined products pipelines as well as its delivery operations and natural gas owned entities.
Shell USA has reached a definitive agreement with Shell Midstream Partners to acquire all of the common units representing limited partner interests in SHLX held by the public. This means that the United States-based company has purchased its totality with an investment of approximately $1.96 billion.
SHLX’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 the country’s Gulf Coast and Midwest refining markets. It also includes delivery operations of 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.
In addition, the assets include interests in entities that own natural gas and refinery gas pipelines that transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the U.S. Gulf Coast.
The Board of Directors of Shell Midstream Partners, the general partner of SHLX, delegated to a conflicts committee of the SHLX Board consisting solely of independent directors, the review, evaluation, negotiation and determination of whether to approve and to recommend for the transaction’s approval. After evaluating the process in consultation with its independent legal and financial advisors, the Conflicts Committee unanimously approved and recommended that the SHLX Board move forward with the transaction.
The acquisition is expected to close in the fourth quarter of 2022, subject to customary closing conditions. A subsidiary of Shell USA, as the holder of a majority of the outstanding SHLX common units, has delivered its consent to approve the transaction concurrently with the execution of the merger agreement.
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