Brookfield Acquires Pipeline Colonial for $9B, Including Debt
Brookfield Infrastructure to Acquire Colonial Pipeline Stake in $9 Billion Deal
Brookfield Infrastructure Partners (BIP.N) announced Thursday it will acquire a stake in Colonial Pipeline, the largest fuel transport system in the United States. The transaction, including debt, is valued at approximately $9 billion.
The acquisition of all active interests in Colonial Enterprises,which includes Colonial Pipeline,is expected to close in the second half of 2025.
Colonial Pipeline: A Key U.S. Fuel Network
The Colonial Pipeline network spans over 5,500 miles, stretching from Houston, Texas, to the New York Harbor. According to the company’s website, it transports over 100 million gallons of fuel daily, including gasoline, jet fuel, diesel, and heating oil.
Brookfield Asset management (BAM.TO), the listed infrastructure flagship company, will hold a $500 million stake in Colonial Enterprises upon completion of the deal.
Shell Divests Stake
Shell (Shel.l) announced late Thursday the sale of its stake in Colossus Acquireco Colossus, a Brookfield subsidiary, for $1.45 billion.
Previous Ownership
The owners of Colonial Pipeline – including the Canadian pension fund caisse de Dépôt et placement du Québec (CDPQ),Shell,and investment firm KKR (KKR.N) – reportedly began considering a sale of Colonial pipeline last year.
CDPQ acquired its stake in Colonial from Conocophillips (Cop.n) for $850 million in 2012. IFM Investors and KKR acquired their respective stakes of 15.8% and 23.4% in 2007 and 2010.
Shell consolidated its 16.13% stake into a single holding in 2019. A subsidiary of Koch Industries has held its current position of 28.1% as 2003.
Earlier in the week, Reuters reported that Brookfield emerged as the winner of an auction process, led by the five pipeline owners for several months, to acquire Colonial Pipeline for over $9 billion, including debt.
Brookfield Infrastructure to acquire Colonial Pipeline: Your Top questions Answered
What’s the main news regarding Colonial pipeline?
Brookfield Infrastructure Partners (BIP.N) is set to acquire a stake in Colonial Pipeline, the largest fuel transport system in the United States. The deal, including debt, is valued at approximately $9 billion.
Who is Brookfield Infrastructure Partners?
Brookfield Infrastructure Partners (BIP.N) is acquiring a stake in Colonial Pipeline. Brookfield Asset management (BAM.TO), the listed infrastructure flagship company, will hold a $500 million stake in Colonial Enterprises upon completion of the deal.
What is Colonial Pipeline?
Colonial pipeline is the largest fuel transport system in the U.S. It consists of the Colonial pipeline network, which spans over 5,500 miles, running from Houston, Texas, to the New York Harbor.
What does Colonial Pipeline transport?
The Colonial Pipeline transports over 100 million gallons of fuel daily, including gasoline, jet fuel, diesel, and heating oil, according to the company’s website.
How much is the Brookfield Infrastructure deal worth?
The deal is valued at approximately $9 billion, including debt.
When is the acquisition expected to close?
The acquisition is expected to close in the second half of 2025.
Who is selling their stake in Colonial Pipeline?
Shell (Shel.l) announced the sale of its stake in Colossus Acquireco Colossus, a Brookfield subsidiary, for $1.45 billion.
how big is the Shell stake being sold?
The exact size of the Shell stake being sold is not explicitly stated in the provided text, but the sale amount is $1.45 billion. Shell had previously consolidated its 16.13% stake into a single holding in 2019.
Who are the other owners of colonial pipeline?
The owners of Colonial Pipeline include:
- Canadian pension fund caisse de Dépôt et placement du Québec (CDPQ)
- Shell
- Investment firm KKR (KKR.N)
- Koch Industries (subsidiary)
- IFM Investors
When did these owners acquire their stakes?
Hear’s a breakdown of when key stakeholders acquired their stakes:
| Owner | Stake Acquisition Details |
|---|---|
| CDPQ | Acquired stake from Conocophillips (Cop.n) for $850 million in 2012. |
| IFM Investors | Acquired a 15.8% stake in 2007. |
| KKR | Acquired a 23.4% stake in 2010. |
| Shell | Consolidated a 16.13% stake in 2019. |
| Koch Industries (Subsidiary) | Holds a 28.1% stake as 2003. |
How did Brookfield win the deal?
Reuters reported that Brookfield emerged as the winner of an auction process, led by the five pipeline owners for several months.