Enteprise Products Partners acquired the general partner of Oiltanking Partners and proposed a merger with the oil storage and transport firm, a two-step transaction that would cost Enterprise $6 billion if completed. Enterprise paid $4.4 billion for the general partner of Oiltanking and would pay $1.4 billion under the merger proposal.
“We have had a strategic relationship and enjoyed mutual growth with Oiltanking Partners and its predecessors since 1983,” said Enterprise CEO Michael Creel. “The combination of Enterprise’s system of midstream assets and Oiltanking Partners’ access to waterborne markets and crude oil and petroleum products storage assets would extend and broaden Enterprise’s midstream energy services business.”
Enterprise said it is the largest customer of Oiltanking, which owns marine terminals on the Houston Ship Channel and the Port of Beaumont. The Houston Ship Channel terminal is connected to Enterprise’s Mont Belvieu, Texas, facility and its LPG export, octane enhancement and propylene businesses.
SEE ALSO: Oiltanking plans $340 million expansion at Beaumont, Texas, terminal
