Blackstone-led group agrees to buy 49.9% stake in Mitsubishi's LNG Canada interest

Blackstone Credit & Insurance funds, together with leading Canadian institutional investors, have agreed to invest $3.1 billion to acquire a 49.9% non-controlling interest in a Mitsubishi Corporation subsidiary that holds MC's interest in the LNG Canada liquefaction business. The investor group includes CPP Investments, OMERS, IMCO and PSP Investments.

LNG Canada is Canada's first and only large-scale LNG export terminal. Its Phase 2 expansion, once complete, will double production capacity to 28 million tonnes per annum. Mitsubishi will remain the controlling partner and keep its full share of LNG offtake.

Goldman Sachs served as lead structuring agent and financial adviser to Blackstone, with Scotiabank as financial adviser. Kirkland & Ellis and Stikeman Elliott acted as legal counsel to Blackstone.