Shell USA, Shell Midstream Partners to Merge in $1.96 Billion Deal

(P&GJ) — Shell USA Inc. has agreed to merge with Shell Midstream Partners LP in a deal valued at $1.96 billion, the company said on Monday.

As part of the merger agreement, Shell USA will acquire all of the common units representing limited partner interests in Shell Midstream Partners held by the public at $15.85 per public common unit in cash for a total value of approximately $1.96 billion.

Shell Midstream Partners’ assets include interests in 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. Its assets also include 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.

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. As a result, SHLX has not solicited and is not soliciting approval of the Transaction by any other holders of SHLX common units.

The transaction is expected to close in the fourth quarter.

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