Diversified miner Glencore announced on Friday that it has completed the sale of a 51% interest in HG Storage International (HGSI) to HNA Innovation Finance Group, subject to certain regulatory approvals and closing conditions by US authorities.
HGSI is a new vehicle which has consolidated Glencore’s petroleum products storage and logistics businesses into a global portfolio of high-calibre assets, located in strategic trading hubs across Europe, Africa, the Middle East and the Americas.
HGSI intends to expand its global footprint through acquisitions and organic growth supported by its shareholders.
In March, Glencore agreed to sell the stake in HGSI to HNA Innovation Finance Group Co for $775-million. Of the original purchase price of $775-million, $579-million is attributable to Friday’s closing, with the balance payable upon closing of the second agreement.
Chinese-owned HNA Group has developed from a local aviation transportation operator to a
global conglomerate, encompassing core divisions of aviation, hospitality, tourism, real estate, retail,
finance, logistics, technology, and shipbuilding.
Glencore and HNA also entered into a second agreement pursuant to which three of the original transaction assets located in the US will be transferred into HGSI in 2018, subject only to receipt of satisfactory clearance from the Committee on Foreign Investment in the United States.