Mitsubishi said in advanced talks on US$8 billion Aethon deal
[NEW YORK] Mitsubishi is in advanced talks to buy the assets of Aethon Energy Management for close to US$8 billion, sources familiar with the matter said, in what would be the Japanese conglomerate's biggest ever acquisition.
Tokyo-based Mitsubishi could announce a deal with the US energy-focused investment firm in the next couple of months, according to the sources. Abu Dhabi National Oil Company (Adnoc) had also been considering a potential transaction involving Aethon, Bloomberg News reported in April.
A deal would likely be structured as a purchase of Aethon's portfolio, which includes natural gas production operations and midstream assets, some of the sources said. While a deal is close, talks could still be delayed or falter, the sources said, asking not to be identified discussing confidential information. It's also possible another bidder could emerge for Aethon, the sources said.
Representatives for Mitsubishi and Aethon declined to comment. A spokesperson for Adnoc did not respond to requests for comment.
Dallas-based Aethon is among the most active drillers in the Haynesville shale basin that straddles East Texas and northern Louisiana. Aethon is close to several liquefied natural gas (LNG) export terminals along the Gulf Coast.
Mitsubishi, one of Japan's major trading companies, is a key supplier of LNG and has a stake in a US export facility in Louisiana. Japan's government sees the artificial intelligence boom potentially lifting power demand over the next decade, and has urged the nation's private firms to invest in gas.
An acquisition of Aethon would be the largest on record by Mitsubishi, Bloomberg-compiled data show, topping its purchase of a stake in a unit of Anglo American for almost US$5.4 billion in 2011. BLOOMBERG
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