Brookfield Set to Acquire Colonial Pipeline Parent Company in Major $9 Billion Transaction

Brookfield Infrastructure Partners LP is set to acquire Colonial Enterprises Inc., the operator of the largest fuel pipeline in the U.S.,for a whopping $9 billion.

This acquisition involves all five owners of Colonial selling their stakes to Brookfield. notably, Shell plc will offload its 16.125% share for $1.45 billion as part of this deal announced on April 4.

this move aligns with president Donald Trump’s push to bolster domestic energy infrastructure. Tho, creating new oil and gas pipelines in the U.S. is no walk in the park due to strict regulatory hurdles—making existing pipelines like Colonial’s even more valuable assets.

The Colonial Pipeline stretches an extraordinary 5,500 miles from Texas all the way up to New Jersey and serves as a crucial supply line for gasoline,diesel,and jet fuel on the East Coast.It faced meaningful challenges when it was shut down for five days back in 2021 due to a cyberattack that caused widespread fuel shortages.

selling its stake will be Shell’s Midstream Operating unit transferring ownership over to Brookfield’s Colossus AcquireCo. The other stakeholders include Koch Industries with a substantial 28.1%,KKR & Co.’s private equity unit holding onto 23.4%, Canadian pension fund Caisse de Depot et Placement du Quebec at 16.5%,and IFM Investors Pty with a share of about 15.8%.

The Deal’s Financial Backing

This transaction is anticipated to finalize by Q4 this year; Morgan Stanley and Mizuho Bank Ltd are leading debt financing efforts while Jefferies and Greenhill & Co., along with Morgan Stanley again as financial advisors have been brought on board by Brookfield—Kirkland & ellis LLP is handling legal matters. p >

Brookfield isn’t new to pipeline investments; they already control Brazil’s NTS pipeline that spans over two thousand kilometers! Plus, they were part of a consortium that snagged a $10 billion stake in Abu Dhabi’s natural gas pipelines back in 2020—showing their commitment towards expanding global energy infrastructure! p >