SHEL - Shell Pipeline offers to buy rest of Shell Midstream Partners

Shell Midstream Partners (SHLX +6.2%) says it received a proposal from Shell Pipeline Company (SHEL +1.4%) to buy all common units not already owned by Shell Pipeline for $12.89/unit; Shell and its affiliates currently own 68.5% of SHLX common units. Shell says the deal would simplify governance of Shell Midstream's assets, reduce costs and provide flexibility to optimize the pipeline portfolio. The proposal is subject to several contingencies, including the approval of the general partner's board and the negotiation of a definitive agreement. Shell Midstream has grappled with operational issues over the past 12 months but its asset base is excellent, Trapping Value writes in an analysis published recently on Seeking Alpha.

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Shell Pipeline offers to buy rest of Shell Midstream Partners