Mitsubishi Corp is pursuing what would become its largest acquisition, with advanced talks to buy Aethon Energy Management for approximately $8 billion. The Japanese trading house is competing to secure substantial natural gas operations adjacent to the U.S. Gulf coast and energy export facilities.
Dallas-based Aethon operates about 200,000 net acres across the Haynesville Shale formation in Louisiana and East Texas, positioning itself as the second-largest Haynesville gas producer behind Expand Energy. The target company produces roughly 2.5 billion cubic feet per day and owns more than 1,400 miles of pipelines.
Talks between Mitsubishi and Aethon are ongoing, though sources cautioned that there is no guarantee a transaction would be agreed. Investment firms RedBird Capital Partners and Canada’s Ontario Teachers’ Pension Plan also hold sizable stakes in the assets.
The pursuit comes after Abu Dhabi National Oil Co. reportedly evaluated an acquisition of Aethon’s assets for around $9 billion in April. Aethon has been working with Goldman Sachs and Citigroup to evaluate its options, including a potential sale or initial public offering.
Tokyo-based Mitsubishi could announce a deal in the next couple of months, according to people familiar with the discussions.
