Status: Terminated
Acquirer: HNA Innovation Finance Group Co., Ltd. (China) Acquired: US assets from Glencore plc Value: Approx. US$196 million Industry: Oil and Gas; Logistics UPDATE: In September 2018, Glencore plc and HNA Innovation Finance Group Co. Ltd. “agreed to terminate the sale” of its U.S. assets. (Glencore plc, Annual Report 2018 at 176.) News reports from earlier in the year stated that the “U.S. government will not approve any investment by HNA Group,” including for “Glencore’s petroleum products storage and logistics business,” because of the lack of “adequate information on who its shareholders are . . .” (Reuters, Exclusive: U.S. puts HNA deals on ice until it gets ownership info – source, Jan. 18, 2018.)
Posted on December 29, 2017
Status: Upcoming/New
On December 29, 2017, Glencore plc, a commodity trading and mining company headquartered in Switzerland, announced that “it has completed the sale of a 51% interest in HG Storage International Limited to HNA Innovation Finance Group Co., Limited,” an entity of HNA Group Co., Ltd. (See Glencore Press Release, Initial completion of Glencore and HNA HG Storage International Limited transaction, Dec. 29, 2017; HNA Group website, Who We Are web page.) However, Glencore also announced that it has entered into a second agreement with HNA “pursuant to which three of the original transaction assets located in the USA will be transferred into [HG Storage International Limited] in 2018, subject only to receipt of satisfactory CFIUS clearance”. (See Glencore Press Release, Initial completion of Glencore and HNA HG Storage International Limited transaction, Dec. 29, 2017.) “Of the original purchase price of $775m, $579m is attributable to [the December 29] closing, with the balance payable upon closing of the second agreement”. (Id.) According to the original announcement on March 31, 2017, this 51% interest is “in Glencore’s petroleum products storage and logistics business”. (Glencore Press Release, Glencore and HNA establish HG Storage International Ltd., Mar. 31, 2017).
