06:33 AM EDT, 04/04/2025 (MT Newswires) -- Brookfield Infrastructure (BIP) agreed to acquire all assets of pipeline operator Colonial Enterprises from a group of five owners, including Shell (SHEL), in a deal worth roughly $9 billion.

Colonial Enterprises operates the Colonial Pipeline, which transports refined oil products primarily across the US East Coast. Colonial's pipeline system spans 5,500 miles between Texas and New York, Brookfield Infrastructure said late Thursday.

Brookfield Infrastructure, the infrastructure company of Brookfield Asset Management ( BAM ) , expects its equity investment in Colonial Enterprises to be $500 million upon completion of the deal, representing 15% of the overall investment. The company said the investment will be financed entirely by proceeds from its recently disclosed capital recycling initiatives.

In a separate statement, Shell said it agreed to offload its 16.125% stake in Colonial Enterprises to Brookfield Infrastructure subsidiary Colossus AcquireCo and its institutional partners for $1.45 billion, including $500 million of non-recourse debt.

"This divestment reflects our focus on performance, discipline and simplification," said Andrew Smith, president of Shell's trading and supply division. "It will allow us to concentrate on areas where we have scale and competitive advantage."

The deal requires approval from regulators and is anticipated to complete in the fourth quarter, according to Shell. Brookfield Infrastructure projects the transaction to complete in the second half.

Shell said other co-owners in Colonial Enterprises also agreed to divest their stakes. They include Koch Capital Investments, KKR-Keats Pipeline Investors, Caisse de depot et placement du Quebec and IFM Investors.