Apollo Partners With BP in $1 Billion Deal for TAP Stake
BP Sells 30.2% Stake
Apollo Global Management, Inc. has agreed to acquire BP's 30.2% stake in the Trans Adriatic Pipeline (TAP) for $1 billion. The deal is expected to close in the second half of 2023, subject to customary closing conditions and regulatory approvals.
Strategic Investment for Apollo
The acquisition of the TAP stake is a strategic investment for Apollo, as it provides the company with exposure to a critical energy infrastructure asset. The TAP is a 550-mile pipeline that transports natural gas from Azerbaijan to Italy, through Greece and Albania. The pipeline is a key part of the Southern Gas Corridor, which is designed to diversify Europe's energy supply and reduce its dependence on Russian gas.
Apollo has a long track record of investing in energy infrastructure, and the acquisition of the TAP stake is consistent with the company's strategy of investing in high-quality assets with long-term growth potential.
BP Focuses on Renewables
The sale of its TAP stake is part of BP's strategy to focus on its core businesses and transition to a low-carbon future. BP has been divesting non-core assets and investing in renewable energy projects in recent years. The company has set a target of reducing its greenhouse gas emissions by 50% by 2030 and becoming net zero by 2050.
The sale of the TAP stake will allow BP to focus on its core businesses, including oil and gas production, refining, and marketing. The company will also use the proceeds from the sale to invest in renewable energy projects.
Conclusion
The acquisition of the TAP stake by Apollo is a significant investment in a critical energy infrastructure asset. The deal is consistent with Apollo's strategy of investing in high-quality assets with long-term growth potential. The sale of the TAP stake is part of BP's strategy to focus on its core businesses and transition to a low-carbon future.
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