Infratil closes Shell deal

Infratil and the NZ Super Fund have closed a $696.5 million deal to buy Shell New Zealand's downstream assets.

The listed infrastructure investor and the Super Fund made the announcement to NZX today, after almost a year of negotiations.

The two companies announced last month they were close to signing a deal, subject to bank funding and third party consents.

The deal is expected to bring strong cashflow with long-term business improvement initiatives and reinvestment potential to New Zealand.

Infratil is buying what the industry describes as Shell's 'downstream' activities - retail stations, fuel transport, storage and distribution. It does not involve any exploration or drilling for oil and gas.