Blackstone to take controlling stake in Tallgrass Energy for $3.3 billion

Industry:    2019-02-01

U.S. private equity firm Blackstone Group LP said on Thursday it would buy a controlling stake in midstream energy company Tallgrass Energy LP for $3.3 billion.

Under the deal, Blackstone will acquire a 44 percent stake in Tallgrass Energy and take over the company’s general partner, Tallgrass Energy GP LLC.

Singapore’s sovereign wealth fund, GIC, will also be a minority investor in the deal.

The deal will be financed by Blackstone’s planned $40 billion infrastructure fund, to which Saudi Arabia’s main sovereign wealth fund agreed last year to contribute up to $20 billion.

It will be the first deal since Blackstone started raising funds.

The transaction is expected to close in the first quarter of 2019.

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