Inter Pipeline has agreed to sell a large slice of its European bulk liquids storage operation, Inter Terminals, to CLH Group for some C$715m. The transaction is expected to close in the fourth quarter, subject to the usual conditions and approvals. The sale includes all of Inter Terminals’ assets in the UK, Ireland, Netherlands and Germany; the eight terminals in Denmark and Sweden will be retained.
“This is a very positive transaction for Inter Pipeline,” says Christian Bayle, president CEO of Inter Pipeline. “Monetising a significant portion of our European asset base enables us to focus resources on developing our higher growth Canadian businesses. As such, proceeds from the sale will be used to reduce debt, strengthen our balance sheet and assist with financing our large capital expenditure programme, including the Heartland Petrochemical Complex.”
The deal will add 15 terminals to CLH’s existing network in Europe, which now operates in eight countries. “This agreement represents a unique opportunity to continue the company’s international expansion and consolidate its presence in the European market,” says José Luis López de Silanes, chairman of CLH.
More than that, it also takes CLH into new product areas, as CEO Jorge Lanza explains: “This transaction will expand CLH’s knowledge on chemical products and biofuel storage by gaining the experience of a European leader in these business segments. It is also in line with CLH’s strategy of diversification beyond hydrocarbons in response to the challenges of climate change.”[post_title] => Inter to sell chunk of European business [post_excerpt] => [post_status] => publish [comment_status] => open [ping_status] => open [post_password] => [post_name] => inter-to-sell-chunk-of-european-business [to_ping] => [pinged] => [post_modified] => 2020-09-22 15:18:02 [post_modified_gmt] => 2020-09-22 14:18:02 [post_content_filtered] => [post_parent] => 0 [guid] => https://hcblive.com/?p=27912 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw )