Glencore has signed a definitive agreement to sell 51% equity interest of its petroleum products storage and logistics business for $775m to HNA Innovation Finance Group (HNA).
The purchase amount is payable in cash upon closing and subject to customary closing adjustments.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The transaction requires certain regulatory approvals and is expected to close in the second half of this year.
This agreement will lead to a new incorporated company known as HG Storage International, which will consolidate Glencore’s existing petroleum products storage and logistics businesses into a global portfolio.
This new firm will have a presence in major trading hubs across Europe, Africa and the Americas.
Glencore Oil head Alex Beard said: “We are pleased to be entering into a partnership with HNA to further develop our global petroleum products storage and logistics business.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“HG Storage brings together Glencore’s expertise in the petroleum products storage business and extensive market knowledge with HNA’s global reach and strong position in Asia.
“HG Storage’s high-quality assets are well positioned to take advantage of the future opportunities we expect to be created by the strong market fundamentals for the sector.
“We also look forward to exploring further potential opportunities for cooperation with HNA in areas of mutual interest.”
Following the completion of this transaction, HG Storage will be governed by its own board of directors.
HNA will be able to appoint three directors, while Glencore will have the right to appoint two directors to the board.
Both companies agreed that at shareholder meetings, the Glencore and HNA representatives will vote in proportion to their respective shareholdings, subject to certain reserved matters.
Glencore and HNA have also agreed an initial three-year lock-up period with regards to their interests in HG Storage.
