M&As this week: Idemitsu Kosan, The CLH Group, ArcLight Energy Partners Fund VI LP

Idemitsu Kosan has agreed to merge with Showa Shell Sekiyu, following the signing of a memorandum of understanding (MoU) in November 2015.

The merger will be implemented through a share exchange, under which Idemitsu Kosan will distribute all its shares to the shareholders of Showa Shell and acquire all the issued shares of Showa Shell.

The two Japanese companies have agreed to form a new company for creating a stable supply of energy and to support energy security.

Idemitsu Kosan is involved in the production and sale of petroleum products and basic oil-based chemicals, while Showa Shell Sekiyu is engaged in importing, refining and distributing petroleum and related products.

The CLH Group has signed an agreement to acquire a 60% interest in Hydrocarbon Storage Terminal (HST).

The acquisition will strengthen the business operations of CLH. The company intends to construct and operate a new facility with a capacity of approximately 100,000m³ for the storage of oil products in Valle de Mexico, following the acquisition.

Based in Spain, the acquirer company is engaged in storage, transportation and distribution of oil products, while the target company is a Mexico-based oil product storage operator.

ArcLight Energy Partners Fund VI has made a non-binding proposal with TransMontaigne Partners to acquire all the issued and outstanding publicly held common units of the latter for $38 per common unit.

The company is executing the proposal through its subsidiary TLP Acquisition Holdings.

The acquirer is a private equity firm, while the target company is an oil pipeline and terminal company.

Both firms are based in the US.

The acquisition is expected to strengthen ArcLight Energy Partners Fund’s midstream portfolio.

National Energy Services Reunited (NESR) has acquired a 29% equity interest in National Petroleum Services (NPS) from Arab Petroleum Investments Corporation (Apicorp).

Apicorp is part of a consortium that acquired 90% of NPS in 2014. NPS is engaged in providing drilling, customised well services and support to customers in the Middle East and North Africa (MENA) and Far East Asia.

The transaction is part of Apicorp’s strategy to expand into the oil and gas services sector, as well as develop a reliable oilfield services provider in the region.

NESR will achieve a significant interest in an integrated energy services provider in  MENA and Far-East Asia through the acquisition, in addition to increasing its market share in Gulf Cooperation Council countries.

The acquirer is an oil and gas services provider in MENA, while Apicorp is a Saudi Arabian multilateral development bank focused on supporting the development of oil and gas industries in the Arab region.

Blacksteel Energy and Drakkar Energy have agreed to combine their businesses and signed a letter of intent (LoI) for the same.

The combined entity will fully own the producing oil and gas lands in the Girouxville area in northwestern Alberta, in which Blacksteel holds a 30% share and Drakkar holds the remaining 70%.

Both based in Canada, the companies have agreed on commercially reasonable financing terms to support an agreed upon capital and business plan and extend the maturity date of Blacksteel’s unsecured convertible debentures.

Each Drakkar shareholder will receive a common share of the post-transaction entity in exchange for a Class A common share of Drakkar, while each common shareholder will be entitled to a common share of the post-transaction entity for every 3.25 common shares, as part of the agreement.

Blacksteel Energy is engaged in the development of oil and natural gas resources, while Drakkar Energy is a private oil sands company focused on the development of petroleum and natural gas resources in Alberta.