Brookfield to Buy Colonial Pipeline for About $9 Billion, Including Debt

Brookfield Infrastructure Partners (BIP.N) is acquiring Colonial Pipeline, the biggest fuel transportation network in the U.S., in a transaction worth nearly $9 billion, including debt, the firm announced on Thursday. The agreement to purchase all assets of Colonial Enterprises, which includes Colonial Pipeline, is anticipated to finalised in the latter half of 2025. Colonial's pipeline network extends more than 5,500 miles from Houston, Texas, to the harbor in New York. According to its website, it transports 100 million gallons of fuel each day, which consists of gasoline, jet fuel, diesel, and heating oil.

The main listed infrastructure firm of Brookfield Asset Management (BAM.TO), will invest $500 million in Colonial Enterprises upon the completion of the deal. Shell (SHEL.L) announced late Thursday that it is divesting its stake in Colonial Enterprises to Colossus AcquireCo, a subsidiary of Brookfield, for $1.45 billion. The owners of Colonial, which include Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), Shell, and investment firm KKR (KKR.N), had started considering a sale of Colonial Pipeline last year.

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In 2012, CDPQ acquired its share in Colonial for $850 million from ConocoPhillips (COP.N), opens new tab. IFM Investors and KKR obtained their respective stakes of 15.8 per cent and 23.4 per cent in 2007 and 2010. In 2019, Shell combined its 16.13 per cent stake into one holding, whereas a Koch Industries subsidiary has maintained its 28.1 per cent share since 2003. Earlier this week, Reuters announced that Brookfield won an auction process that the five owners of the pipeline had conducted over several months to acquire Colonial Pipeline for over $9 billion, including debt.