The Australia-based IFM Investors fund is acquiring a majority ownership of the operator of the largest port in the UK, Associated British Ports (ABP), with a deal valued at $13.4 billion. This agreement is valued at approximately £10 billion for ABP.
Details of the Agreement
According to this agreement announced on Wednesday, the fund managed by IFM Investors is purchasing 63.9% of ABP's shares from two Canadian pension investors. The Canada Pension Plan Investment Board (CPP Investments) is selling 33.9% of the shares, while OMERS is also divesting 30% of its shares. Although the companies have not disclosed financial details, reports estimate the value of this deal to be around £10 billion.
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ABP's Role in UK Trade and Energy
With 19 port facilities in the UK, including major gateways in Southampton, Immingham, and Hull, ABP manages about 25% of the country's maritime trade and plays a significant role in supporting the UK's energy sector, including over half of its offshore wind capacity.
Kyle Mangini, Global Head of Infrastructure at IFM Investors, stated that this investment will contribute to the ongoing development of ABP's infrastructure and port operations. This agreement also reflects the growing interest among pension investment funds and infrastructure investors in port assets that provide long-term representation of international trade and energy infrastructure.
ABP has also continued to invest in its facilities in recent years, including the Immingham renewable fuels terminal, Green Port Hull, and the Horizon cruise terminal in Southampton.
Henrik L. Pedersen, CEO of ABP, described this agreement as a confirmation of the company's business and long-term strategy, adding that ABP intends to seek further growth opportunities alongside IFM Investors and other remaining stakeholders.
CPP Investments and OMERS stated that this sale allows them to realize the value of their long-term investments and allocate capital to other new opportunities. This deal is still subject to the usual approvals from shareholders and regulatory bodies, including a national security review, and is expected to be finalized in the first half of 2027.
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