Shell to Divest Stake in Colonial Enterprises to Brookfield for $1.45 Billion
Deal News | Apr 04, 2025 | PR Newswire Cision Shell Midstream Operating LLC
Shell Midstream Operating LLC, a subsidiary of Shell plc, has agreed to sell its 16.125% stake in Colonial Enterprises, Inc. to Colossus AcquireCo LLC, an affiliate of Brookfield Infrastructure Partners L.P., for $1.45 billion. The transaction includes $500 million in non-recourse debt and awaits regulatory approval. The sale reflects Shell’s strategic focus on performance and competitive advantage. Collectively with its partners, all shareholders have agreed to divest 100% of Colonial Enterprises to Brookfield. Colonial operates independently and owns Colonial Pipeline Company, a venture transporting oil products from the Gulf Coast to the Atlantic Seaboard. Shell Midstream Operating LLC is a key player in U.S. energy infrastructure, managing an extensive pipeline network that supports Shell's interests across the country. The definitive sale is anticipated to finalize by the end of 2025.
Sectors
- Energy
- Infrastructure
- Private Equity
Geography
- United States – The transaction involves the sale of interest in Colonial Enterprises, which operates key infrastructure within the U.S., particularly from the Gulf to the Atlantic.
Industry
- Energy – The transaction involves Shell, a major player in the oil and gas sector, highlighting shifts in energy asset management.
- Infrastructure – Brookfield Infrastructure Partners, involved in acquiring energy infrastructure assets, is central to the transaction.
- Private Equity – Colossus AcquireCo LLC, a subsidiary of Brookfield focusing on investment acquisition, pertains to the private equity classification.
Financials
- $1.45 billion – The value of Shell's divested 16.125% interest in Colonial Enterprises, including $500 million in non-recourse debt.
- $500 million – Amount included as non-recourse debt in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Shell Midstream Operating LLC | Selling Company | Company | A subsidiary of Shell plc, divesting its 16.125% interest in Colonial Enterprises. |
| Shell plc | Parent Company | Company | Global energy company that operates Shell Midstream Operating LLC. |
| Colossal AcquireCo LLC | Bidding Company | Company | A wholly-owned subsidiary of Brookfield Infrastructure Partners acquiring Shell's stake. |
| Brookfield Infrastructure Partners L.P. | Other | Company | Institutional entity whose subsidiary is acquiring a significant energy infrastructure asset. |
| Colonial Enterprises, Inc. | Target Company | Company | Operates Colonial Pipeline Company, vital in U.S. oil product transportation. |
| Andrew Smith | Representative of Shell | Person | President of Shell Trading & Supply, quoted in the press release. |