Shell Midstream Buys Interests in 2 Pipeline Companies for $800 Million
By Chris Wack
Shell Midstream Partners L.P. (SHLX) said Monday that it has entered into an agreement to acquire Royal Dutch Shell's (RDSA) 25.97% equity interest in Explorer Pipeline Co. and 10.125% equity interest in Colonial Pipeline Co. for $800 million.
Shell Midstream said in a release that the acquisition will increase its interest in Explorer to 38.59% and in Colonial to 16.125%.
Shell Midstream said that the acquisition is expected to be immediately accretive to unitholders and anticipated to be funded with 75% debt through a credit facility.
The deal is expected to close in the second quarter.
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(END) Dow Jones Newswires
May 13, 2019 08:37 ET (12:37 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.