IFM Investors snaps up UK’s biggest port operator in $13.4bn deal
Australian fund manager IFM Investors acquires 64% stake in Associated British Ports, valuing the operator at £10bn.
Australian infrastructure fund manager IFM Investors has acquired a majority stake in Associated British Ports (ABP), the UK’s largest port operator, in a transaction valuing the company at approximately £10 billion ($13.4 billion). The deal marks one of the most significant UK infrastructure investments of the year.
ABP operates 19 ports across England, Scotland, and Wales, managing around a quarter of the UK’s seaborne trade. Key locations include Southampton, the country’s third-largest container port, the Humber industrial region, and South Wales. The company has also been expanding into renewable energy projects, such as the Immingham Renewable Fuels Terminal and Green Port Hull, aligning with the UK’s decarbonisation efforts.
Competitive bidding process: IFM Investors
The sale followed reports earlier this year that Canada’s CPP Investments and OMERS, which together held a 64% stake in ABP, were seeking buyers. By August, the bidding had narrowed to three final contenders: IFM Investors, Apollo Global Management, and KKR. India’s Adani Group had also shown interest but did not advance to the final round.
Adani Ports
ABP was originally formed in the early 1980s through the privatisation of the British Transport Docks Board under then-Prime Minister Margaret Thatcher. It remained publicly listed until 2006, when a consortium including Goldman Sachs and OMERS took it private. CPP Investments later acquired its 33.9% stake in 2015, while OMERS retained 30%. Other investors include Singapore’s sovereign wealth fund and Kuwait’s Wren House Infrastructure.
Strategic implications for UK ports
IFM Investors, which manages over $100 billion in infrastructure assets, has emphasised its long-term commitment to UK infrastructure. The firm already holds investments in Manchester Airports Group and Anglian Water, and its acquisition of ABP is expected to support further development of the port operator’s facilities. Henrik L. Pedersen, ABP’s CEO, welcomed the deal, stating:
“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, continuing ABP’s long-term investment for our customers, local communities, and the UK.”
Henrik L. Pedersen·CEO of Associated British Ports
For CPP Investments, the sale represents a strategic exit after nearly a decade of ownership. James Bryce, Managing Director and Head of Infrastructure at CPP, said:
“This transaction represents an attractive opportunity to realise the value of our long-term investment and recycle capital into new opportunities.”
James Bryce·Managing Director, Head of Infrastructure, CPP Investments
The deal underscores the growing appeal of port infrastructure among global investors, particularly as logistics hubs play an increasingly critical role in trade and energy transition strategies.
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