HNA Innovation Finance Group plans to buy a 51% interested in Glencore's petroleum products storage business and create a newly incorporated company.
The deal for $775 million, will result in the creation of HG Storage International, which will consolidate Glencore's existing petroleum product storage and logistics businesses into a portfolio of assets. The new company will have an established present in major trading hubs and other strategically important locations across Europe, Africa and the Americas.
Alex Beard, head of Glencore Oil, says: 'HG Storage brings together Glencore's expertise in the petroleum products storage business and extensive market knowledge with HNA's global reach and strong position in Asia.
'HG Storage's high quality assets are well positioned to take advantage of the future opportunities we expect to be created by the strong market fundamentals for the sector.'
The deal is expected to close during the second half of 2017.
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