Up to $3.7 billion M&A, investment deals in green energy sector also in this week's roundup
Bennett Jones advised Gibson Energy in its $1.45 billion (US$1.1 billion) acquisition of a US-based oil export facility. Also in this week’s deals roundup are M&A and investment deals in the green energy sector valued at up to $3.7 billion (US$2.8 billion).
Gibson to buy South Texas Gateway oil facility for $1.45 billion
Gibson Energy Inc. has agreed to acquire South Texas Gateway Terminal (STGT), a newly built, high-quality crude oil export facility, from Buckeye Partners in a deal valued at $1.45 billion (US$1.1 billion).
Located in Ingleside, Texas, STGT is the second largest oil exports facility in the United States with total capacity of 8.6 million barrels across 20 tanks.
Bennett Jones LLP and Latham and Watkins LLP are acting as Canadian and US legal counsel, respectively, to Gibson, while J.P. Morgan Securities Canada is serving as exclusive financial advisor.
Morgan Lewis is serving as legal counsel to Buckeye Partners and STGT, with a team that includes Benjamin Wills, Conor Larkin, and associate Erin O’Gurek.
“This transaction amplifies our high-quality infrastructure revenues,” said Gibson president and CEO, Steve Spaulding. “To add nearly 9 million barrels of terminals storage in a highly strategic location furthers our momentum in growing Gibson’s infrastructure footprint and provides a platform for future growth with existing and new customers.”
The deal is expected to close in the third quarter of 2023, subject to customary closing conditions.
Brookfield Renewable to acquire Duke Energy’s Commercial Renewables unit for $3.7 billion
Brookfield Renewable has agreed to acquire the unregulated utility scale Commercial Renewables business of Duke Energy Corporation in a deal valued at $3.7 billion (US$2.8 billion).
The deal includes more than 3,400 megawatts (alternating current) of utility scale solar, wind and battery storage across the United States.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, and Morgan Stanley & Co LLC and Wells Fargo Securities LLC as financial advisors, to Duke Energy.
“As one of the country’s largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the Commercial Renewables’ portfolio,” said Lynn Good, Duke Energy chair, president and CEO. “This sale is an important step in our transition into a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to our customers and stakeholders.”
“With this acquisition, we are adding a scale operating renewable platform with a full suite of in-house capabilities and a proven management team experienced in operations and development,” said Connor Teskey, Brookfield Renewable CEO. “We are also adding to our pipeline of renewable development projects, solidifying our position as one of the largest renewable energy businesses in the U.S. with almost 90,000 megawatts of operating and development assets.”
Upon deal completion, the primary operations of the Commercial Renewables business will remain in Charlotte, North Carolina and the Duke Energy employees that support the business will transition over to Brookfield.
The deal is anticipated to close by the end of 2023, subject to regulatory approval and customary closing conditions.
Ottawa to invest $350 million to boost green tech in aerospace sector
Ottawa federal government is investing $350 million to support the decarbonization of the aerospace industry, with a focus on hybrid and alternative propulsion, aircraft systems, the transition to alternative fuels, and aircraft support infrastructure.
The fund includes the $49 million aerospace innovation investment announced in 2019.
Innovation Minister Francois-Philippe Champagne said, “(This) ... will help drive and accelerate the green industrial transformation of Canada's aerospace industry, generating high-value jobs while strengthening supply chains and supporting the transition to a net-zero economy.”
A growing amount of pressure is being placed on the aviation industry, which accounts for 2 percent of the world's greenhouse gas emissions.
The Aerospace Industries Association of Canada spearheaded recent discussions, and the government claims the deployment is a direct response to the key suggestion that resulted from those consultations.
The objective is to create a national network that supports cooperative research and development initiatives spanning from aircraft architecture to sustainable fuel and is governed by an industry-led board.
