Brookfield Strikes $9 Billion Deal For Colonial Pipeline—Shell Offloads Minority Stake

Shell PLC (NYSE:SHEL) shares are trading lower premarket on Friday. On Thursday, the company’s subsidiary, Shell Midstream Operating LLC, reached an agreement to sell its 16.125% stake in Colonial Enterprises, Inc. to Brookfield Infrastructure Partners LP’s (NYSE:BIP) subsidiary, Colossus AcquireCo LLC, for $1.45 billion.

Together with Shell, the co-owners of Colonial Enterprises have agreed to sell 100% of their Colonial shares to Brookfield.

In particular, Brookfield Infrastructure Partners and its institutional partners have agreed to acquire Colonial Enterprises, including the Colonial Pipeline, for $9 billion (9x EBITDA).

The transaction ...