December 29, 2017 / 9:54 AM / a year ago

Glencore partly completes stake sale in oil storage assets to China's HNA

HONG KONG, Dec 29 (Reuters) - Glencore Plc said on Friday it had partially completed the sale of a 51 percent stake in its storage and logistics businesses to a unit of Chinese conglomerate HNA Group, although transfer of some assets were still pending U.S. clearance.

Glencore in March agreed to sell the stake in HG Storage International Ltd, a vehicle that carries its petroleum products storage and logistics portfolio, to HNA Innovation Finance Group Co for $775 million.

The commodities trader said $579 million of the purchase price had been closed and that it had agreed to transfer to HNA the remaining three assets located in the United States in 2018 upon clearance from the Committee on Foreign Investment in the United States (CFIUS), which reviews national security implications of foreign investments in U.S. firms or operations.

HNA said, in a separate statement on Friday, that the firms had completed the transaction and would operate HG Storage International Ltd’s portfolio in Europe, Africa and the Americas as a joint venture. It did not mention the pending U.S. approval for the transfer of three U.S. assets.

A spokeswoman for HNA did not have an immediate comment on CFIUS approval. (Reporting by Kane Wu; Editing by Himani Sarkar)

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