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KKR acquires Chevron’s stake in Colonial Pipeline

Kohlberg Kravis Roberts has bought Chevron’s 23.44 per cent stake in the Colonial Pipeline.

KKR acquired the minority stake in partnership with the National Pension Service of Korea, the fourth largest public pension fund in the world.

The Colonial pipeline system is the largest refined products pipeline in North America, running from supply centres in the Gulf Coast to customers located along the eastern seaboard of the US.

Chevron was one of five shareholders of Colonial.

"Colonial plays an important role in supplying the eastern US markets with a variety of fuels. The pipeline is an attractive infrastructure asset with a history of stable earnings and a high quality customer base. It also has the benefit of having an experienced management team with a stellar operational track record," says Marc Lipschultz, the global head of KKR’s energy and infrastructure business.

"We are undertaking this investment with KKR because it fits well with our efforts to both diversify our investments around the world and to seek long-term, stable returns to match the long-term needs of our beneficiaries," adds Jun Kwang-woo, chairman and chief executive of NPS.

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