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Glencore completes initial sale of oil storage business to China’s HNA

Jan 03, 2018
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Swiss-based Glencore has completed the sale of a 51 per cent interest in its storage and logistics businesses, HG Storage International Limited (HGSI), to China's Innovation Finance Group Co., Limited (HNA).

The deal was announced the deal to sell its stake in HGSI to HNA for US$775 million back in March last year but the transfer of some assets is pending U.S. clearance.

Glencore said that $579 million of the deal had closed so far. It added that three assets located in the United States would be transferred to HNA in 2018 upon receiving clearance from the Committee on Foreign Investment in the United States (CFIUS).

HGSI is a vehicle which has consolidated Glencore's petroleum products storage and logistics businesses into a global portfolio of high-calibre assets, located in strategic trading hubs across Europe, Africa, the Middle East and the Americas.

In a statement, Glencore said that HGSI intends to expand its global footprint through acquisitions and organic growth supported by its shareholders.