This move signals a transformative moment in the realm of energy infrastructure. Brookfield will take over the entirety of Colonial Enterprises' assets, with the deal anticipated to be finalized in the second half of 2025.

Spanning a monumental 5,500 miles from Houston to New York, Colonial Pipeline is the lifeline of the U.S. fuel supply, delivering an astonishing 100 million gallons of fuel each day, including essential products like gasoline, jet fuel, diesel, and heating oil.

Brookfield Asset Management's premier infrastructure arm is set to infuse $500 million of equity into Colonial Enterprises upon the deal's completion, marking a significant investment in the future of energy distribution.

A new Era for U.S. energy infrastructure

In a concurrent strategic move, Shell is divesting its share in Colonial Enterprises to Colossus AcquireCo, a Brookfield subsidiary, for a hefty $1.45 billion. This sale culminates a series of strategic evaluations that began last year, with the pipeline's then-owners—Canadian pension powerhouse CDPQ, energy titan Shell, and investment juggernaut KKR—scouting for potential acquirers.

Historically, CDPQ entered the scene with an $850 million investment in 2012, purchasing from ConocoPhillips. IFM Investors and KKR came on board in 2007 and 2010, respectively. Shell amped up its game by consolidating a 16.13% stake in 2019, while Koch Industries has been a consistent player with its 28.1% stake since 2003.

In a fiercely contested auction, Brookfield outshone its competitors, clinching the pipeline with a bid surpassing $9 billion, debt included. This strategic coup cements Brookfield's position in the energy domain.