Shell USA and Shell Midstream Partners plan to merge after Shell USA agreed to acquire Shell Midstream for approximately $1.96 billion.
A subsidiary of Shell USA—which is a fully owned subsidiary of Shell—currently owns 269,457,304 shares, or a 68.5% stake, in Shell Midstream. The transaction includes Shell USA purchasing the remaining common units, which represent the limited partner interests in Shell Midstream held by the public, for $15.85 per share in cash.
The deal is expected to close in the fourth quarter of 2022, Shell said.
Shell Midstream assets include interests in entities that own crude oil and refined products pipelines and terminals that serve as key infrastructure to transport onshore and offshore crude oil production to U.S. Gulf Coast and Midwest refining markets and deliver refined products from those markets to major demand centers, as well as storage tanks and financing receivables that are secured by pipelines, storage tanks, docks, truck, and rail racks and other infrastructure used to stage and transport intermediate and finished products.
Its assets also include interests in pipelines that transport offshore natural gas to market hubs and deliver refinery gas from refineries and plants to chemical sites along the U.S. Gulf Coast.