KKR, Korea pension fund to acquire Chevron’s stake in Colonial Pipeline

Private equity firm Kohlberg Kravis Roberts & Co (KKR) teamed up with the National Pension Service of Korea (NPS), to acquire Chevron's stake in Colonial Pipeline Co, for an undisclosed sum.

Oil and gas major, Chevron Corporation yesterday said that its wholly-owned subsidiary, Chevron Pipe Line Co, which was one of the five shareholders of Colonial, has sold its 23.44 per cent stake in Colonial to an affiliate of KKR.

Other stake holders in Colonial are Kansas-based Koch Industries Inc with 28.09 per cent interest, ConocoPhillips with 16.55 per cent, Royal Dutch Shell with 16.12 per cent and IFM with 15.80 per cent.

Although the San Ramon, California-based Chevron did not reveal the financial terms of the transaction, various US media reports have suggested that the deal is worth nearly $1 billion.

Chevron had said in March 2010 that it was pursuing marketing and possible sale of its interest in Colonial in line with the company's ongoing efforts to align its portfolio of assets with its strategies.

Atlanta-based Colonial owns and operates a 5,500-mile petroleum products pipeline in the US that transports products from supply centers on the Gulf Coast to customers located along the Eastern Seaboard.