Shell USA and Shell Midstream Partners are to merge, after the two companies signed a definitive agreement.
Under the terms of the deal, Shell USA will acquire all of the common units of Shell Midstream Partners that are currently held by the public at US$15.85 (€15.57) each in cash. The equates to a total value of US$1.96 billion. A subsidiary of Shell USA already owns around 68.5% of the common units.
The Shell Midstream Partners board delegated the review of the deal to a conflicts committee made up of independent directors. The committee unanimously approved and recommended the transaction, which was subsequently also unanimously approved by the board. No other approvals are necessary as a subsidiary of Shell USA holds the majority of the outstanding common units. The merger is expected to be complete in Q4 2022.
Shell Midstream Partners hold interests in in entities that own crude oil and refined products pipelines and terminals serving key markets in the US Gulf Coats and Midwest, delivering onshore and offshore crude and transporting refined products. The infrastructure at the facilities includes by pipelines, storage tanks, docks, truck racks and rail racks. It also holds interests in natural gas transport and storage entities.