Oil M&A Continues As IFM Buys Out Buckeye For $10.3BOil M&A Continues As IFM Buys Out Buckeye For $10.3B



Buckeye Partners, LP, one of the largest and most independent liquid petroleum products pipeline operators in the United States, said Friday that the badet manager IFM Global Infrastructure Fund would buy it in a cash deal worth US $ 10. , 3 billion for companies and US $ 6.5 billion. patrimonial value.

Buckeye Partners, a listed public limited company, owns, operates or has significant interests in approximately 6,000 miles of pipe in the United States. Buckeye also has more than 100 delivery locations and 115 liquid petroleum product terminals with a total tank capacity of more than 118 million barrels. Its network of maritime terminals is mainly found in the regions of the East Coast and the Gulf Coast of the United States, as well as in the Caribbean.

Under the final agreement with IFM Investors, the IFM Global Infrastructure Fund will buy all pending Buckeye units for US $ 41.50 per common unit.

Master Limited Partnerships (MLP) are a corporate structure that is exclusive to the United States. With this, companies do not pay corporate taxes and give most of their profits to investors, the participants, as well as dividends.

Buckeye's board of directors has already unanimously approved the proposed acquisition by IFM, while the closing of the agreement is subject to the approval of the majority of the owners of the Buckeye unit, as well as regulatory approvals and other customary closing conditions. The closing of the transaction is expected to take place in the fourth quarter of this year.

"The proposed acquisition of Buckeye is a complementary addition to IFM's substantial investments in energy infrastructure in North America and around the world. "We hope to be able to support the continued growth of the business," said Jamie Cemm, Executive Director of IFM, in a joint statement.

"The Buckeye Board recently reviewed the strategic options for the business and determined that the IFM proposal to acquire Buckeye is the best for Buckeye," said Buckeye President, President and CEO, Clark C. Smith.

After news of the transaction, Buckeye units soared more than 28 percent shortly after the market opened on Friday.

By Tsvetana Paraskova for Oilprice.com

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