Shell Unit Offers to Buy Rest of Pipe Operator for $1.6 Billion
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A unit of Shell Plc offered to buy the rest of its pipeline affiliate for about $1.6 billion in cash, dealing another potential blow to the master limited partnership model once popular in the energy industry.
According to the non-binding, preliminary proposal, Shell Pipeline Company LP would pay the other owners in Shell Midstream Partners LP $12.89 per unit of the pipeline operator, the equivalent of the closing price for Feb. 10. Shares of the MLP jumped as much as 6.75% after the announcement.