Mitsubishi Corp in Talks for $8 Billion US Shale Acquisition, Source Says

June 16 (Reuters) – Mitsubishi Corp (8058.T) is in talks to acquire the U.S. shale production and pipeline assets of Aethon Energy Management for roughly $8 billion, a person familiar with the matter said on Monday.

The deal, should it be struck, would give the Japanese conglomerate a substantial natural gas operation adjacent to the U.S. Gulf coast and the energy export facilities being developed along it.

Talks between Mitsubishi and Aethon are ongoing, said the source, who cautioned that there was no guarantee a transaction would be agreed and spoke on condition of anonymity to discuss confidential deliberations.

While the assets are owned and operated by U.S. energy-focused investment firm Aethon, fellow money managers RedBird Capital Partners and Canada’s Ontario Teachers’ Pension Plan also hold sizable stakes.

Aethon and RedBird declined comment. OTPP did not immediately respond to a comment request. Mitsubishi could not be reached outside of normal business hours in Japan.

The upstream assets of Aethon, which primarily focus on the Haynesville shale formation in Louisiana and East Texas, constitute one of the largest privately held U.S. gas producers.

Reuters reported in November that Aethon was exploring options for its operations, which also include more than 1,400 miles (2,250 km) of pipelines across the Haynesville basin and Wyoming, where Aethon also has some production assets.

Bloomberg News earlier on Monday reported the talks between Mitsubishi and Aethon, citing people familiar with the matter.

Reporting by David French in New York; Editing by Alison Williams

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