Brookfield Asset Management is nearing the completion of a $9bn+ acquisition of Colonial Pipeline, in what is set to become one of the largest private equity-backed infrastructure transactions in recent years.

The Toronto-based investor is finalising the deal to acquire the 5,500-mile fuel transport network from five institutional and private equity owners: Koch Industries, KKR, CDPQ, IFM Investors, and Shell.

Koch holds the largest individual stake at 28.1%, followed by KKR at 23.4%, Shell at 16.13%, IFM at 15.8%, and CDPQ, which entered the business in 2012 through an $850m deal with ConocoPhillips. KKR and IFM acquired their stakes in 2007 and 2010, respectively, while Shell consolidated its holdings in 2019.

Sources close to the process told Reuters that Brookfield has emerged as the preferred bidder after a months-long auction. A formal announcement is expected in the coming weeks.

Colonial Pipeline is the largest fuel pipeline system in the United States, transporting more than 100 million gallons of refined products daily between Houston and New York. Its scale, regulatory strength, and consistent demand profile have made it a highly attractive asset for long-term infrastructure investors.

The deal signals a major liquidity event for the exiting private equity and pension fund stakeholders, most of whom have held their interests for over a decade.

Brookfield has been an aggressive buyer across energy and transport infrastructure, in line with a broader trend among institutional investors targeting essential infrastructure assets with predictable cash flows and inflation-linked returns.

The acquisition further solidifies Brookfield’s position as one of the dominant players in global infrastructure investing, alongside rivals such as Blackstone and Global Infrastructure Partners.