In a seismic shift for the U.S. energy infrastructure, Brookfield Infrastructure Partners has announced a $9 billion deal to acquire Colonial Pipeline, the nation’s largest refined oil products pipeline system. The transaction, expected to reshape the energy transportation landscape, involves Brookfield securing 100% of Colonial Enterprises’ assets, including the 5,500-mile pipeline that stretches from Texas to New York.
A Strategic Move Backed by Legal Heavyweights
The high-profile acquisition is being guided by Kirkland & Ellis LLP, representing Brookfield, while Milbank LLP is advising the five co-owners of Colonial Enterprises—including Shell and multiple investment firms—on the sale.
Brookfield, in a Thursday announcement, highlighted the pipeline’s decades-long track record of strong performance and high utilization, serving a critical customer base along the U.S. East Coast.
Breaking Down the Finances
At the time of closing, Brookfield’s equity investment is anticipated to be around $500 million, accounting for roughly 15% of the total equity—a portion that will be entirely funded through capital recycling initiatives. This places the total equity investment at over $3.3 billion.
