Vitol, a global oil trading company sold a 50 percent stake in its oil storage unit VTTI for $1.15 billion to U.S. firm Buckeye Partners, the Dutch company said on Monday.
Buckeye is one of the largest independent liquid petroleum products pipeline operators in the United States in terms of volumes delivered, with approximately 6,000 miles of pipeline and a terminal network comprising more than 120 liquid petroleum products terminals with aggregate storage capacity of over 110 million barrels.
Chris Bake, chairman of VTTI said, “Buckeye brings in a wealth of terminalling experience and knowledge which will further strengthen the strategic position of VTTI as we continue to invest in its growth.”
Through this transaction, Buckeye will access VTTI’s significant international footprint. VTTI is one of the largest independent global energy terminal businesses that, through its subsidiaries and partnership interests, owns and operates approximately 54 million barrels of petroleum product and crude oil storage capacity across 13 terminals located on five continents.
Upon completion, Buckeye and Vitol will have equal board representation and voting rights in VTTI, which will continue to be run as an independent company under chief executive Rob Nijst.
VTTI's Nijstsaid: “Through this transaction, VTTI will have two strong shareholders that will support VTTI’s continued growth as an independent global terminal operator.”
The transaction is subject to regulatory approvals and is expected to close in early January 2017. Citi acted as exclusive financial advisor to Vitol.