October 23, 2018

October 23, 2018

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October 22, 2018

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Upcoming/New CFIUS Filing: HNA Innovation Finance Group Co. Ltd. (China) and US Assets from Glencore plc

Status: Upcoming/New Filing

Acquirer:  HNA Innovation Finance Group Co., Ltd. (China)

Acquired: US assets from Glencore plc

Value: Approx. US$196 million

Industry: Oil and Gas; Logistics


On December 29, 2017, Glencore plc, a commodity trading and mining company headquartered in Switzerland, announced that “it has completed the sale of a 51% interest in HG Storage International Limited to HNA Innovation Finance Group Co., Limited,” an entity of HNA Group Co., Ltd. (See Glencore Press Release, Initial completion of Glencore and HNA HG Storage International Limited transaction, Dec. 29, 2017; HNA Group website, Who We Areweb page.)  However, Glencore also announced that it has entered into a second agreement with HNA “pursuant to which three of the original transaction assets located in the USA will be transferred into [HG Storage International Limited] in 2018, subject only to receipt of satisfactory CFIUS clearance”.  (See Glencore Press Release, Initial completion of Glencore and HNA HG Storage International Limited transaction, Dec. 29, 2017.)  “Of the original purchase price of $775m, $579m is attributable to [the December 29] closing, with the balance payable upon closing of the second agreement”.  (Id.)  According to the original announcement on March 31, 2017, this 51% interest is “in Glencore’s petroleum products storage and logistics business”.  (See Glencore Press Release, Glencore and HNA establish HG Storage International Ltd.Mar. 31, 2017).

© Copyright 2018 Squire Patton Boggs (US) LLP

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