Key Takeaways
- • Blackstone and a group of Canadian pension funds will invest $3.1 billion to acquire a 49.9% interest in Mitsubishi Corp's holding company that owns a 15% stake in the LNG Canada project, according to Reuters.
- • Mitsubishi values its stake at about $1.6 billion, with the remaining investment earmarked for the LNG Canada Phase 2 expansion.
- • The Blackstone-led group includes CPP Investments, OMERS, IMCO and PSP, and the deal is expected to close in November.
- • Mitsubishi says the transaction will not affect its LNG offtake volumes or customer relationships, and that Blackstone's capital will help advance the expansion while improving the capital efficiency of its investment.
Summary
Blackstone and a group of Canadian pension funds will invest $3.1 billion to acquire a 49.9% interest in the holding company of Japanese trading house Mitsubishi Corp, the companies said on Monday, according to Reuters. The holding company owns a 15% stake in LNG Canada, the Shell-led export project in British Columbia that began production in June 2025. Mitsubishi said its stake is valued at about $1.6 billion, and the remaining investment will be used to fund the Phase 2 expansion.
The Blackstone-led group includes Canada Pension Plan Investment Board (CPP Investments), Ontario Municipal Employees Retirement System (OMERS), Investment Management Corporation of Ontario (IMCO) and Public Sector Pension Investment Board (PSP). CPP Investments' Head of Real Assets Credit Geoff Souter described the opportunity as a "compelling opportunity" to invest at scale in Canada.
The transaction follows the final investment decision announced by Shell and its partners in September on the LNG Canada Phase 2 expansion, which will double the facility's production capacity to 28 million tons a year. The holding company currently offtakes 2.1 million metric tons per year of LNG from the project, with volumes expected to rise to 4.2 million tons a year after the expansion. Mitsubishi said the deal will not affect its LNG offtake volumes or customer relationships, and that it would use Blackstone's financial resources to help advance the expansion while improving the capital efficiency of its investment.
The deal is expected to close in November, a Mitsubishi spokesperson said. The story was reported by Yuka Obayashi in Tokyo and Nivedita Balu in Toronto.
The Blackstone-led group includes Canada Pension Plan Investment Board (CPP Investments), Ontario Municipal Employees Retirement System (OMERS), Investment Management Corporation of Ontario (IMCO) and Public Sector Pension Investment Board (PSP). CPP Investments' Head of Real Assets Credit Geoff Souter described the opportunity as a "compelling opportunity" to invest at scale in Canada.
The transaction follows the final investment decision announced by Shell and its partners in September on the LNG Canada Phase 2 expansion, which will double the facility's production capacity to 28 million tons a year. The holding company currently offtakes 2.1 million metric tons per year of LNG from the project, with volumes expected to rise to 4.2 million tons a year after the expansion. Mitsubishi said the deal will not affect its LNG offtake volumes or customer relationships, and that it would use Blackstone's financial resources to help advance the expansion while improving the capital efficiency of its investment.
The deal is expected to close in November, a Mitsubishi spokesperson said. The story was reported by Yuka Obayashi in Tokyo and Nivedita Balu in Toronto.
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