Brookfield Asset Management is finalising a $9bn-plus acquisition of Colonial Pipeline, the largest US fuel transportation system, marking one of the largest private equity-backed infrastructure deals in recent years, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the Toronto-based alternative asset manager has emerged as the winning bidder in the months-long auction process run by Colonial’s five current owners, including Caisse de dépôt et placement du Québec (CDPQ), KKR, Shell, IFM Investors, and Koch Industries.
A formal announcement is expected in the coming weeks, barring any last-minute hurdles, they added.
The deal represents a significant liquidity event for Colonial Pipeline’s private equity and pension fund shareholders, many of whom have held stakes in the business for over a decade.
CDPQ acquired its Colonial stake in 2012 for $850m from ConocoPhillips, while KKR (23.4%) and IFM Investors (15.8%) bought in during 2007 and 2010, respectively, and Shell (16.13%) consolidated its ownership into a single stake in 2019. Koch Industries (28.1%), meanwhile, has been an investor since 2003.
Colonial Pipeline’s 5,500-mile fuel network is a critical piece of US energy infrastructure, transporting over 100 million gallons of fuel daily from Houston to New York Harbour.
Brookfield has been actively expanding its infrastructure portfolio, with recent investments across transportation, energy, and utilities, while this deal aligns with the broader trend of private equity firms and institutional investors deploying capital into infrastructure, driven by resilient demand and predictable returns. Brookfield, Blackstone, and Global Infrastructure Partners (GIP) have all been aggressive acquirers in the sector.
