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Brookfield Nears Sale of TraPac Stake Valuing Terminal Operator at $2 Billion to Mitsui OSK

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(Bloomberg) -- Brookfield Asset Management Inc. is in advanced talks to sell its 49% stake in terminal operator TraPac LLC to Mitsui OSK Lines Ltd., according to people with knowledge of the matter.

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The transaction is set to value TraPac, which has operations in the ports of Los Angeles and Oakland and in Jacksonville, Florida, at about $2 billion including debt, said the people, who asked not to be identified discussing private negotiations. Talks are ongoing and may still fall apart, one of the people said.

A Brookfield representative declined to comment. Representatives for Tokyo-listed Mitsui OSK Lines and TraPac didn’t immediately respond to requests for comment.

Los Angeles-based TraPac was founded in 1985 as a subsidiary of Mitsui OSK Lines, also known as MOL, which in 2014 sold a 49% stake in the terminal business to Brookfield. The company is led by president and CEO Dan Bergman.

Existing investors in port assets have been seizing opportunities to obtain full ownership. Last year, Blackstone Infrastructure Partners bought out controlling shareholders of marine-terminal operator Carrix Inc., French shipping company CMA CGM SA agreed to buy out the majority owners of Fenix Marine Services, and the Canada Pension Plan Investment Board agreed to acquire control of Ports America.

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