Australian infrastructure investor IFM Investors has agreed to purchase a controlling stake in Associated British Ports (ABP) for over £10 billion (equivalent to $13.4 billion). This deal results in the sale of 63.88% of this port operator's shares by major Canadian investors including CPP Investments and OMERS to an indirect subsidiary of IFM Global Infrastructure Fund.
Deal details and implications
ABP confirmed this binding agreement in a statement on the London Stock Exchange. Although specific financial details have not been disclosed, reports indicate a value of over £10 billion for the deal. The Australian group has managed to outmaneuver strong competitors including KKR and Apollo, as well as Indian billionaire Gautam Adani.
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As the UK's largest port operator, ABP manages 21 ports across the country, including the ports of Southampton, Immingham, and the Humber complex. These ports handle about a quarter of the country's maritime trade, with activities including container transport, vehicles, bulk goods, recreational shipping, and marine energy infrastructure.
End of Canadian involvement
This deal marks the end of two decades of Canadian involvement in ABP. OMERS was part of a consortium that privately acquired ABP in 2006 for £2.8 billion, while CPP Investments joined this investment in 2015. The Singapore Sovereign Wealth Fund (GIC) and Wren House Infrastructure of Kuwait are also considered minority investors in this group.
IFM is owned by Australian and British pension funds and manages approximately $96 billion in infrastructure assets globally. This purchase comes as ABP seeks significant investments in its network. For example, ABP is advancing a £500 million development at the Port of Talbot in Wales to create a major manufacturing and assembly center for floating wind turbines.
The completion of this deal is subject to regulatory approvals and mandatory national security registrations in the UK. These developments signify major changes in the ownership structure of one of the UK's largest port operators, and it remains to be seen what impact this change will have on the port industry and maritime trade in the country.
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