Koch brothers buy PetroLogistics for over $2 billion

HOUSTON, May 28 (UPI) -- Flint Hills Resources, owned by American investors Charles and David Koch, successfully acquired PetroLogistics for $2.1 billion in cash. The deal was announced Wednesday.

PetroLogistics controls the world's largest propane dehydrogenation plant, and converts propane -- usually recovered from natural gas processing plants and petroleum refinement -- into propylene, a petrochemical common in synthetic products such as plastic and paint.

Propane prices are on the decline as domestic production of natural gas rises with the increased exploitation of shale gas deposits.

Class B shares -- the most commonly held form of stock -- of the Houston-based company will be bought from shareholders for $14 each, just over 8 percent higher than Tuesday's closing price.

The deal is expected to be finalized before the end of the year. Koch Industries currently has an annual revenue of $150 billion dollars-per-year.

[Correction: A previous version of this story incorrectly described PetroLogistics as a "fracking" company]