Japanese trading company Mitsui & Co. has completed the acquisition of 100 per cent of shares of STATS (UK), a provider of pipeline integrity solutions, as part of its path towards a global energy transition.
STATS (UK) announced on 5 July that it had executed a share purchase agreement to sell 100 per cent of the issued share capital of the company to Mitsui & Co.
The acquisition combines the Aberdeenshire-headquartered company with Mitsui’s Iron & Steel Business Unit.
According to STATS, the move is expected to help progress Mitsui’s medium-term management plan for “transformation and growth” and presents an opportunity to achieve market acceleration in relation to sustainable infrastructure maintenance.
The closing of the transaction is subject to the satisfaction of regulatory competition approvals and is expected in the summer.
“Under its Medium-term Management Plan, Mitsui is aiming to work toward a global energy transition by providing optimal solutions through business,” said Koichi Fujita , Chief Operating Officer of Mitsui Iron & Steel.
“Utilising the equipment and services provided by STATS, Mitsui will also work to strengthen the value chain for its upstream oil and gas interests and businesses, particularly in the areas of CCS and hydrogen.”
STATS will continue to deliver its services, products and solutions from its existing operational bases. All executive members will remain with the company upon completion of the transaction, whilst Pete Duguid, Chairman and founder of STATS, will retire.
“The acquisition of STATS is complementary to Mitsui’s plan to establish a strong, sustainable presence in the pipeline maintenance market as a service provider,” said Leigh Howarth , CEO of STATS.
“Having worked with the Mitsui team for several months now, we’re delighted to be formally joining forces to pursue opportunities in both the traditional oil and gas pipeline markets and the emerging low-carbon markets.”
The private equity investor Business Growth Fund, which has supported STATS since 2012, will realize its investment and exit the business.
To remind, Mitsui & Co. recently joined TotalEnergies and Petronas in evaluating several CO2 storage sites in the Malay Basin, including both saline aquifers and depleted offshore fields, in order to develop a carbon storage project.