Canada Pension Plan Investment Board and OMERS today announced they have agreed to terms with a fund managed by IFM Investors to sell each of their respective 33.9% and 30.0% stakes in Associated British Ports. CPP Investments and OMERS initially acquired their stakes in 2015 and 2006 respectively. Completion of the transaction is subject to stakeholder review and approval processes. Financial terms are not disclosed.
ABP is a leading ports group, the largest in the UK1, providing essential gateways for trade and enabling green infrastructure essential for the UK’s energy transition. As the operator of 19 facilities, the business handles approximately 25% of UK seaborne trade. ABP provides support for over half the UK’s offshore wind and catalyses investment, good jobs and prosperity in coastal communities.
Kyle Mangini, Global Head of Infrastructure, IFM Investors, said: “We are pleased to have reached an agreement where a fund managed by IFM would acquire a majority stake in ABP, the UK’s largest ports group1 with strategically located assets serving some of the country’s most important trade and industrial regions. We look forward to supporting continued development of ABP’s infrastructure and operations, drawing on IFM’s long-term investment approach and experience across ports and other essential infrastructure assets. As an investor owned by Australian and UK pension funds, this transaction reflects our longstanding commitment to mobilising pension capital into UK infrastructure. We are excited to work closely with ABP’s management team, employees and our fellow shareholders to support the company’s continued success.”
James Bryce, Managing Director, Head of Infrastructure, CPP Investments, said: “We are proud to have supported ABP for over a decade, during which time it has continued to operate and develop the critical infrastructure that underpins trade across the UK. I would like to take this opportunity to express my thanks to the management team, employees across the country, the Board and fellow investors for their hard work and partnership throughout our period of ownership. ABP is a high-quality business which has an extremely important role to play supporting the UK economy in the years ahead and we are confident it will continue to thrive under new ownership. This transaction represents an attractive opportunity to realize the value of our long-term investment and recycle capital into new opportunities, helping us deliver strong long-term returns for CPP contributors and beneficiaries.”
Luca Lupo, Senior Managing Director and Head of Europe, OMERS Infrastructure, said: “We are proud to have supported ABP over the past 20 years, working alongside fellow shareholders and management to grow and strengthen one of the UK’s critical infrastructure businesses. During our ownership and with our support, ABP has continued to invest in its ports, support UK trade and develop new opportunities linked to the energy transition, including through major projects such the Immingham Renewable Fuels Terminal, Green Port Hull and Southampton’s Horizon cruise terminal. I would like to thank the management team, employees and fellow shareholders for their contributions and wish them continued success. The UK remains a priority market for OMERS Infrastructure, and we are actively exploring new opportunities to invest in high-quality infrastructure businesses across the country.”
Henrik L. Pedersen, CEO of Associated British Ports, said “Today marks a bold new chapter for ABP. Since my arrival at ABP eight years ago, I have experienced firsthand the support for our business and the execution of growth opportunities provided by CPP Investments and OMERS. On behalf of the entire company, I would like to extend my profound appreciation for their partnership. Attracting investment from a fund managed by IFM Investors is a powerful endorsement of our business, our people and our strategy. We are excited to unlock further growth opportunities, together with IFM Investors and our other shareholders, continuing ABP’s long-term investment benefitting our customers, our local communities, and the UK.”
The transaction is subject to customary shareholder and regulatory approvals and is expected to complete in H1 2027.