By the OGJ Online Staff
HOUSTON, Nov. 26 -- Enbridge Inc., Calgary, said Monday it will buy a 25% stake in Compania Logistica de Hidrocarburos CLH SA, Spain's largest refined products transportation and storage business, for $530 million (Can.).
The transaction is expected to close in the first quarter, with an effective date of Jan.1.
Pat Daniel, Enbridge president and CEO, said, "The CLH assets are consistent with our international strategy and represent what we do best, which is to provide energy transportation solutions to our customers, both in North America and internationally. This is a blue chip investment within the European Union that provides an attractive return and significant earnings contribution, as well as growth opportunities related to future liberalized infrastructure development in Spain and other European markets."
CLH owns and operates the largest pipeline network and storage facilities on the Spanish mainland and Balearic Islands. CLH operates as a common carrier and employs 2,600 people.
It has more than 3,400 km of products pipelines, 37 products storage facilities with 38 million bbl of capacity, nine marine tankers, and 130 road tanker trailers.
CLH is majority owned by Spanish refiners, which under EU market rules must sell some of their ownership. Repsol-YPF SA, BP Oil Espana SA, and CEPSA will sell part of their ownership to Enbridge.
Upon closing, it is expected that Enbridge and Repsol-YPF will each own 25% of CLH; CEPSA will own 15%, and BP and a unit of Royal Dutch/Shell Group will own 5% each. Other buyers are expected to acquire the remaining 24%.