Big Firms Take Leading Roles in $20.7B Deal With Abu Dhabi National Oil
In a down period for both M&A work and PE-fueled transactions, the pipeline deal with Abu Dhabi National Oil is the largest single energy deal of 2020.
June 25, 2020 at 04:00 PM
3 minute read
Simpson Thacher & Bartlett office sign. (Photo: Diego M. Radzinschi/ALM)
Simpson Thacher & Bartlett represented a consortium of six private equity firms that purchased a $10.1 billion stake in a newly created gas pipeline from Abu Dhabi National Oil Co. [ADNOC] on Tuesday. The value of the share, which has rights to 38 pipelines, is estimated to be $20.7 billion.
The Simpson team included New York M&A partners Eli Hunt and David Lieberman and associates Jihyun Chung, Michael Schaeppi and Benjamin Bertan; London-based M&A partner Amy Mahon and associates Alexander Yeagley, Luca Sportelli and Jenny Leung; and New York tax partner Jonathan Goldstein and associate Tyler Robbins.
Several other law firms also advised in the deal. Latham & Watkins represented the consortium on financing. U.K.-based Ashhurst represented ADNOC in the deal. Dentons was counsel to Italian private equity investor Snam, while Dubai-based Al Tamini & Company was local counsel for the group of investors.
The private equity firms in the deal are mostly familiar names in the big deal space. Global Infrastructure Partners, Brookfield Asset Management, the Ontario Teacher's Pension Board, Singapore-based GIC, NH Investment & Securities and Italian private equity firm Snam round out the list.
The deal will inject $10.1 billion of foreign direct investment into Abu Dhabi, which according to S&P Global Ratings is looking at a 7.5% contraction in gross domestic product for the calendar year.
The investment will cover a 49% stake in the new pipeline, with ADNOC holding on to the remaining 51%.
ADNOC CEO Sultan al-Jaber told The New York Times that the company needs to "focus on the things we know we can control and that is of course our cost, we need to remain agile."
Al-Jaber also told the Times that the OPEC+ pact to cut oil supply could produce a tighter oil market in the coming weeks. Fueled by pandemic-related travel restrictions and economic shutdowns, oil prices bottomed out at $11.26 per barrel of crude on April 26 before bouncing back to $47.30 on June 23.
While M&A deal volume and value has been down in 2020, there have been a few larger deals that have managed to push through.
For example, Cravath, Swaine & Moore represented Just Eat Takeaway.com N.V. in its acquisition of Grubhub for $7.3 billion on June 10. Grubhub was represented by Kirkland & Ellis.
But even though some deals are coming through, the outlooks isn't great. The Harvard Business Review published a survey on June 10 stating that 51% of respondents said they anticipated "remaining on a temporary pause until the timing and nature of economic recovery is evident through late 2020."
Read More:
Deal Watch: Wachtell, Others Help Clients Buttress Finances as COVID-19 Grinds Down Deals
M&A Activity Fell Off in 2020′s First Quarter—Even at Kirkland
Deal Watch: COVID-19 Weighs on Deals, But a Few Big Ones Push Through
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All![White & Case Crosses $4M in PEP, $3B in Revenue in 'Breakthrough Year' White & Case Crosses $4M in PEP, $3B in Revenue in 'Breakthrough Year'](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/americanlawyer/contrib/content/uploads/sites/378/2024/03/Heather-McDevitt-767x633.jpg)
White & Case Crosses $4M in PEP, $3B in Revenue in 'Breakthrough Year'
6 minute read![Lawyers Across Political Spectrum Launch Public Interest Team to Litigate Against Antisemitism Lawyers Across Political Spectrum Launch Public Interest Team to Litigate Against Antisemitism](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://k2-prod-alm.s3.us-east-1.amazonaws.com/brightspot/11/67/f75a9f5d46b08088f1ca60a48425/karp-clement-barr-767x633.jpg)
Lawyers Across Political Spectrum Launch Public Interest Team to Litigate Against Antisemitism
4 minute read![Munger, Gibson Dunn Billed $63 Million to Snap in 2024 Munger, Gibson Dunn Billed $63 Million to Snap in 2024](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/americanlawyer/contrib/content/uploads/sites/404/2023/01/Snapchat-App-004-767x633.jpg)
![Jones Day Names New Practice Leaders for Antitrust, Business and Tort Litigation and Latin America Jones Day Names New Practice Leaders for Antitrust, Business and Tort Litigation and Latin America](https://images.law.com/cdn-cgi/image/format=auto,fit=contain/https://images.law.com/americanlawyer/contrib/content/uploads/sites/402/2024/03/Jones-Day-sign-01-767x633.jpg)
Jones Day Names New Practice Leaders for Antitrust, Business and Tort Litigation and Latin America
Law Firms Mentioned
Trending Stories
- 1Judge Rules Georgia Railroad Can Seize Land as Landowners Vow to Fight
- 2On the Move and After Hours: Einhorn Barbarito; Gibbons; Greenbaum Rowe; Pro Bono Partnership
- 3On The Move: Squire Patton Boggs, Akerman Among Four Firms Adding Atlanta Partners
- 4Is the Collateral Order Doctrine About to Have a 'Brat Summer'?
- 5Trump Administration Faces Lawsuit Over USAID Stop-Work Orders
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250