Mitsubishi eyes $8bn acquisition of Aethon Energy Management
Mitsubishi is reportedly in advanced discussions to acquire the US shale production and pipeline assets of Aethon Energy Management for an estimated $8bn (Y1.16bn), reported Reuters, citing a source familiar with the matter.
The Aethon assets, primarily located in the Haynesville shale formation in Louisiana and east Texas, are one of the largest privately held gas producers in the US.
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Aethon is backed by investment firm RedBird Capital Partners and Canada’s Ontario Teachers’ Pension Plan, which hold significant stakes in the assets.
The acquisition would provide the Japanese conglomerate with significant natural gas operations near the US Gulf Coast, complementing the energy export facilities currently under development in the region.
The ongoing talks between Mitsubishi and Aethon were disclosed by a source who requested anonymity due to the confidential nature of the negotiations.
The source also noted that there is no certainty that the deal will be finalised.
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By GlobalDataIn response to inquiries, Mitsubishi, Aethon, RedBird and the Ontario Teachers’ Pension Plan all declined to comment on the matter.
Mitsubishi released a statement regarding the acquisition, stating: “Reports in certain news media, regarding Mitsubishi Corporation being in advanced negotiations for the acquisition of US-based Aethon Energy Management, have been circulated.
“At this point, however, Mitsubishi Corporation has not made any decision that is consistent with the contents of those reports. Should any matter requiring disclosure be decided, we will make an announcement in a timely and appropriate manner.”
Mitsubishi has a diversified portfolio with equity in multiple liquefied natural gas (LNG) projects globally, including in Australia, Canada, Malaysia, Oman, Russia and the US.
The company’s total equity LNG production is approximately 13 million tonnes per year.
In November last year, Aethon was reportedly considering options for the sale of its US natural gas production and midstream assets, valued at approximately $10bn.
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