IFM Investors, based in Australia, has reached an agreement to buy a controlling share in Associated British Ports (ABP), the largest port operator in the UK. This deal values ABP at around £10 billion (approximately $13.4 billion).
Announced on Wednesday, the deal involves a fund managed by IFM Investors buying a total of 63.9% of ABP from two Canadian pension funds. The Canada Pension Plan Investment Board (CPP Investments) will sell its 33.9% share, while OMERS will sell its 30% stake.
While the exact financial details were not disclosed, a report from Bloomberg indicated that the deal values ABP at about £10 billion, according to an insider.
ABP manages 19 port facilities across the UK, including key locations in Southampton, Immingham, and Hull. The company is responsible for about 25% of the UK's maritime trade and plays a crucial role in the country’s energy sector, being involved in more than half of its offshore wind capacity.
This acquisition marks a significant shift in ownership for one of Britain's key maritime infrastructure firms. OMERS has owned its stake since 2006, and CPP Investments became a shareholder in 2015.
Kyle Mangini, who is the global head of infrastructure at IFM Investors, stated that this investment will help further develop ABP's port infrastructure and operations.
The deal shows the increasing interest from pension funds and infrastructure investors in port assets, as these provide long-term exposure to international trade, energy infrastructure, and industrial activities.
IFM Investors, owned by Australian pension funds and the UK's Nest pension scheme, manages about £157 billion in assets worldwide and already has investments in port infrastructure globally.
In recent years, ABP has continued to invest in its terminals, including the Immingham Renewable Fuels Terminal, Green Port Hull, and Southampton’s Horizon cruise terminal.
Henrik L. Pedersen, the CEO of ABP, expressed his support for the agreement, stating that the investment validates the company's business and long-term goals.
He mentioned that ABP plans to seek further growth opportunities in collaboration with IFM Investors and the other remaining shareholders.
CPP Investments and OMERS noted that selling their shares will allow them to realize the value of their long-term investments and reinvest in new opportunities.
This transaction is still pending the necessary approvals from shareholders and regulators, including a national security review, and is expected to be finalized in the first half of 2027.