Trafigura AG, a leader in international commodities trading and logistics, 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, to Buckeye Partners, L.P.. The all-cash transaction valued at USD860 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; a deep-water, high-volume marine terminal located on the Corpus Christi Ship Channel, a condensate splitter and LPG storage complex, and crude gathering facilities serving the prolific Eagle Ford shale play.
“This transaction is consistent with our long-term strategy to support our trading business through targeted investments in infrastructure and logistical assets,” said Trafigura AG's Jeff Kopp, Head of North America Oil Trading. “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.