Russian regulator greenlights U.S. distributor's purchase of 50% of Vitol Terminals
BALTIYSK. Dec 13 (Interfax) - Russia's Federal Anti-Monopoly Service (FAS) has approved an application from Buckeye Partners, a major U.S. independent oil products distributor, to acquire 50% of Netherlands-based VIP Terminals Holding B.V., the regulator said.
"FAS reviewed the application of Buckeye Partners LP to acquire rights enabling it to determine the conditions for carrying out the business activities of CJSC Baltic Oil Transshipment Company by acquiring 50% of the issued share capital of VIP Terminals Holding B.V. and decided to approve this application," the regulator said.
VIP Terminals Holding B.V. owns Dutch company VTTI B.V., which owns VTTI Holdings B.V. VTTI Holdings B.V. owns Baltiysk Terminals B.V., which owns CJSC Baltic Oil Transshipment Company in Kaliningrad Region.
It was reported in October that Vitol Group, the world's biggest independent oil trader, is selling a 50% stake in VTTI B.V. for $1.15 billion to Buckeye Partners. After the deal is closed, which the companies expect to happen in early January 2017, VTTI will be equally owned by Buckeye and Vitol. The companies expect the deal to increase the strategic value of the business and strengthen VTTI's position as the leading independent provider of energy storage solutions, Vitol said in a press release.
VTTI operates 13 port terminals on five continents, and owns tank farms with combined capacity for about 54 million barrels.