Enbridge to acquire 25pc stake in CLH

Canadian pipeline and utility firm Enbridge Inc has agreed to buy 25 per cent of Spanish oil products distributor CLH from Spain's Repsol YPF and two other shareholders, Repsol said yesterday.

Enbridge will pay 370 million euros ($327 million) in cash for the stake and take on 50 million euros ($44 million) of debt, a source close to the deal said.

The other sellers are Cepsa - controlled by Totalfina - and Britain's BP, Repsol said.

Repsol is currently the biggest shareholder in former state-owned CLH with 61 per cent, while Cepsa has 25 per cent and BP almost eight per cent. Royal Dutch/Shell owns another five per cent.

The sale process would take a few months to complete and the final contract should be signed during the first quarter of next year, Repsol said.

The deal met the terms of a government ruling that no one shareholder should have more than 25 per cent of CLH and that companies with refineries in Spain should together own no more than 45 per cent.

Repsol aims eventually to reduce its holding to 25 per cent of CLH, Cepsa to 15 per cent and BP five per cent, Repsol said.

CLH, whose full name is Compania Logistica de Hidrocarburos CLH SA, made a net profit of 21 billion pesetas ($111 million) on sales of 86 billion pesetas last year.

It operates some 3,400 km of pipeline and fleets of oil tankers and trucks. Its market dominance prompted the government to rule that the company should seek new shareholders and once this process is complete CLH may sell shares on the stock market.