Merger Agreement Shell USA and Shell Midstream Partners Announce Merger
The companies Shell USA and Shell Midstream Partners (SHLX) have executed a definitive agreement and plan of merger pursuant to which Shell USA will acquire all of the common units representing limited partner interests in SHLX for a total value of approximately 1.96 billion dollars.
Shell Midstream Partners, headquartered in Houston, owns, operates, develops and acquires pipelines and other midstream and logistics assets. According to an agreement, the company will merge with Shell USA.
SHLX’s 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 entities that own natural gas and refinery gas 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.
Following receipt of the recommendation of the Conflicts Committee, the SHLX Board reviewed the terms of the Transaction and the Merger Agreement, and unanimously approved the Transaction.
The Transaction is expected to close in the fourth quarter of 2022, subject to customary closing conditions. A subsidiary of Shell USA, as the holder of a majority of the outstanding SHLX common units, has delivered its consent to approve the Transaction concurrently with the execution of the Merger Agreement.