Trafigura AG has successfully completed the sale of 80 percent of its membership interests in Trafigura Terminals LLC, the entity which holds its South Texas midstream assets (USA), to Buckeye Partners, L.P.
The all-cash transaction valued at US$860 million and received all necessary regulatory approvals from the Federal Trade Commission. Trafigura AG and Buckeye first announced the sale agreement on September 2, 2014.
Trafigura AG will maintain a 20 percent interest in the new joint venture and retain commercial rights to use all of the assets which include;
Trafigura AG's Jeff Kopp, Head of North America Oil Trading stated:
This transaction is consistent with our long-term strategy to support our trading business through targeted investments in infrastructure and logistical assets. By leveraging third-party investment, we free up capital to be reinvested in other business activities.
Citigroup served as exclusive financial advisor to Trafigura AG in connection with the transaction.
Trafigura's primary trading businesses are the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates. It is the world's second largest privately owned non-ferrous and oil trading company.