Shell sells stake in Colonial Enterprises to Brookfield for $1.45bn
Shell completed the sale of its 16.125% interest in Colonial Enterprises Inc. to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners and its institutional partners. The deal, valued at $1.45 billion including approximately $500 million in non-recourse debt, marks a significant shift in ownership of one of the most critical fuel transport systems in the United States.
Colonial Enterprises owns the Colonial Pipeline Company, the largest refined products pipeline in the US, which delivers around 100 million gallons of gasoline, diesel, and jet fuel daily across more than 5,500 miles from the Gulf Coast to the East Coast. With this acquisition, Brookfield and its partners, KKR, Koch Capital Investments, CDPQ, and IFM Investors, now own 100% of Colonial Enterprises.
For Shell, the transaction aligns with its ongoing strategy to simplify its portfolio and concentrate on core businesses where it holds scale and competitive strength. Shell noted that the sale supports its focus on disciplined capital allocation and long-term performance. The move comes amid broader efforts by the company to realign its energy transition and investment priorities.
Originally announced in April 2025, the transaction followed a competitive auction among the five co-owners. The other stakeholders, who acquired their positions between 2003 and 2012, participated in the coordinated sale to Brookfield. Shell had consolidated its 16.125% interest in Colonial in 2019.
Brookfield’s total investment for the acquisition of all stakes in Colonial Enterprises is reported to value the company at roughly $9 billion. The firm will invest approximately $500 million in equity at closing, giving it full operational and financial control over Colonial’s assets. Regulatory approvals are still pending, but the transaction is expected to close by the fourth quarter of 2025.
This acquisition strengthens Brookfield’s US infrastructure portfolio and deepens its presence in the energy transport sector at a time of high strategic interest in midstream assets. For Shell, the divestment represents another step in streamlining its business as it adapts to a changing global energy landscape.
