Shell Pipeline Company proposes to take over Shell Midstream Partners

Shell Pipeline Company LP said that it has made a non-binding offer to acquire the remaining shares in Shell Midstream Partners that it previously not owned from the latter’s public shareholders for $12.89 per share in cash.

Currently, Shell Pipeline Company and its affiliates hold nearly 68.5% of shares in Shell Midstream Partners, which is listed on the New York Stock Exchange (NYSE).

Based in Houston, Shell Midstream Partners is engaged in owning, operating, developing, and acquiring pipelines as well as other midstream and logistics assets.

Shell Pipeline Company proposes to take over Shell Midstream Partners. Photo courtesy of Jim Black from Pixabay.

According to Shell Pipeline Company, the proposed deal will make the governance of Shell Midstream Partners’ assets easier, cuts down costs, and give flexibility to streamline the pipeline portfolio.

The deal is subject to various contingencies such as the approval of the board of directors of Shell Midstream Partners and the meeting of closing conditions.

Shell Pipeline Company stated: “There can be no assurance that such definitive documentation will be executed or that any transaction will materialize on the terms described above or at all.”

Shell Midstream Partners said that the board of directors of its general partner plans to form a conflicts committee for reviewing, assessing, and negotiating the proposal.