Brookfield acquires Colonial Pipeline for $9bn
Deal News | Apr 04, 2025 | Zawya
Brookfield Infrastructure Partners is set to purchase Colonial Pipeline, a key player in the U.S. fuel transportation sector, for about $9 billion, inclusive of debt. This acquisition, involving a significant 5,500-mile pipeline network that transports 100 million gallons of fuel daily, marks a major transaction in the infrastructure sector. The deal, expected to close by late 2025, includes Brookfield's $500 million equity investment. Sellers include Shell, Canadian pension fund CDPQ, and investment firm KKR, who had initiated the sale process last year. Shell divests its stake for $1.45 billion to a Brookfield subsidiary, Colossus AcquireCo, while CDPQ and others had acquired their stakes over the years in separate transactions.
Sectors
- Infrastructure
- Energy
- Private Equity
Geography
- United States – The article discusses the acquisition of Colonial Pipeline, which operates primarily within the United States.
- Canada – The Canadian pension fund CDPQ is one of the major stakeholders selling its interest in Colonial Pipeline.
Industry
- Infrastructure – The article revolves around Brookfield Infrastructure Partners acquiring Colonial Pipeline, a major infrastructure asset in fuel transportation.
- Energy – Colonial Pipeline is a critical component of the U.S. energy supply chain, transporting fuel such as gasoline and jet fuel over a vast network.
- Private Equity – Brookfield Infrastructure Partners, a private equity firm, is central to this acquisition deal along with other investment entities involved in the sale.
Financials
- 9 billion – The total deal value for the acquisition of Colonial Pipeline by Brookfield, including debt.
- 500 million – The equity investment that Brookfield Infrastructure Partners will have in Colonial Enterprises at the closing of the deal.
- 1.45 billion – The amount Shell is selling its stake in Colonial Enterprises for, to Colossus AcquireCo.
- 850 million – The amount CDPQ paid for its stake in Colonial in 2012.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Brookfield Infrastructure Partners | Acquiring Company | Companies | Brookfield Infrastructure Partners is buying Colonial Pipeline, making a significant investment in infrastructure. |
| Colonial Pipeline | Target Company | Companies | Colonial Pipeline is a major U.S. fuel transportation system at the center of the acquisition. |
| Colossus AcquireCo | Acquiring Subsidiary | Companies | A subsidiary of Brookfield Infrastructure Partners, involved in acquiring Shell’s stake. |
| Shell | Selling Company | Companies | Shell is selling its interest in Colonial Enterprises to Colossus AcquireCo. |
| Caisse de dépôt et placement du Québec (CDPQ) | Selling Company | Companies | A Canadian pension fund that owns a stake in Colonial Pipeline and is selling in the transaction. |
| KKR | Selling Company | Companies | Investment firm involved in the sale of its stake in Colonial Pipeline. |
| IFM Investors | Selling Company | Companies | Investment firm with a stake in Colonial Pipeline, also involved in the sale. |
| Koch Industries | Stakeholder | Companies | Current stakeholder in Colonial Pipeline with a significant holding. |
| ConocoPhillips | Former Owner | Companies | ConocoPhillips sold its stake to CDPQ in 2012. |