Enbridge Inc has agreed in principle to acquire a 25% stake in Compania Logistica de Hidrocarburos (CLH SA), Spain's largest refined products transportation and storage business.
Principal terms of the agreement will include acquisition of 25% of the common shares of CLH for about Canadian $530 million. Expected to be accretive to earnings per share beginning in 2002, the acquisition is subject to final due diligence, execution of purchase and shareholder agreements, and other customary closing conditions. It is anticipated to close in first-quarter 2002, with an effective date of Jan 1, 2002.
CLH owns and operates the largest pipeline network and storage facilities on the Spanish mainland and Balearic Islands. It operates as a common carrier and employs about 2,600 people. CLH operates more than 3,400 kilometers of products pipelines, 37 products storage facilities with 38 million barrels of capacity, nine marine tankers, and 130 road tanker trailers.
Upon closing, Enbridge and Repsol YPF each are expected to own 25% of CLH; CEPSA will own 15% while BP and Shell will own 5% each. Other shareholders yet to be identified are expected to acquire the remaining portion.