Brookfield Infrastructure Partners will acquire Colonial Enterprises, operator of the largest fuel pipeline in the U.S., in a $9 billion deal, reflecting increased private equity interest in critical energy infrastructure.

Information on the Target

Brookfield Infrastructure Partners, along with its institutional affiliates, has entered into an agreement to acquire Colonial Enterprises, which operates the largest fuel pipeline in the United States. This $9 billion transaction reflects the increasing interest of private equity in essential energy infrastructure assets. Colonial Pipeline is renowned for its vast network, stretching 5,500 miles from Texas to New Jersey, and is responsible for supplying a significant portion of gasoline, diesel, and jet fuel to the East Coast of the U.S.

The deal will grant Brookfield full ownership of Colonial, which is currently backed by a consortium of five shareholders, including KKR, CDPQ, IFM Investors, Koch Inc., and Shell's Midstream Operating unit. The consortium is liquidating its stake for a total of $1.45 billion as part of this transition.

Industry Overview in the U.S.

The U.S. energy sector, particularly the midstream infrastructure component, is characterized by a complex regulatory landscape that has made it increasingly difficult to develop new oil and gas pipelines. As regulatory scrutiny persists and permitting ch