Glencore and HNA establish HG Storage International Ltd.

Glencore plc has entered into a definitive agreement with HNA Innovation Finance Group Co., for HNA to purchase a 51% equity interest in Glencore’s petroleum products storage and logistics business for $775 million.

The Transaction is subject to certain regulatory approvals and closing conditions and is expected to close during the second half of 2017.

The Transaction will result in a newly incorporated company, HG Storage International Ltd., which will consolidate Glencore’s existing petroleum products storage and logistics businesses into a global portfolio of high-calibre assets. HG Storage will have an established presence in major trading hubs and strategically important locations across Europe, Africa and the Americas.

Upon closing, HG Storage will be governed by its own board of directors. HNA shall have the right to appoint three directors to the board, alongside two Glencore-appointed directors.

In addition, and consistent with a mutual commitment to a successful long-term partnership, Glencore and HNA have agreed to an initial three-year lock-up period in respect of their interests in HG Storage.

Head of Glencore Oil, Alex Beard said: “We are pleased to be entering into a partnership with HNA to further develop our global petroleum products storage and logistics business. HG Storage brings together Glencore’s expertise in the petroleum products storage business and extensive market knowledge with HNA’s global reach and strong position in Asia. HG Storage’s high quality assets are well positioned to take advantage of the future opportunities we expect to be created by the strong market fundamentals for the sector. We also look forward to exploring further potential opportunities for cooperation with HNA in areas of mutual interest.”

For more information visit www.glencore.com

3rd April 2017