BP to Acquire US Midstream MLP in $700 Million Buyout

BP agreed to acquire all outstanding common units of BP Midstream Partners it doesn’t already directly or indirectly own, representing roughly 47.8 million common units, in an all-stock transaction.

Hart Energy Staff

BP Plc agreed on Dec. 20 to acquire BP Midstream Partners LP, the British oil major’s pipeline operator in the U.S., in a buyout transaction worth more than $700 million.

“In line with BP’s strategy introduced last year of becoming an integrated energy company, this transaction will deepen BP’s interests in, and simplifies the ownership and governance structure of, midstream assets that support integration and optimization of its fuels value chain in the U.S.,” BP said in a company release.

According to the release, BP will acquire all outstanding common units of BP Midstream Partners not already owned directly or indirectly by BP, representing roughly 47.8 million common units, in an all-stock transaction. In exchange, BP Midstream unitholders will receive 0.575 of an American depositary share of BP, translating to a total price of about $723 million for the deal, according to Reuters calculations.

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