Major Canadian Pension Funds Initiate Strategic Exit from UK Ports Giant
Two of Canada's largest public pension investment managers are preparing to divest their substantial holdings in the United Kingdom's biggest port operator, Associated British Ports, in a transaction that could value the critical infrastructure asset at more than £10 billion.
Strategic Divestment Process Underway
The Canada Pension Plan Investment Board (CPPIB) and Ontario Municipal Employees Retirement System (OMERS) have formally engaged investment bank Morgan Stanley to explore the sale of their respective stakes in ABP. According to sources familiar with the situation, CPPIB currently holds 34 percent of the port operator while OMERS maintains a 33 percent ownership position.
This coordinated divestment strategy represents one of the most significant infrastructure transactions in recent European markets. Industry insiders suggest that a deal could potentially be finalized during the second half of 2026, though they emphasize that discussions remain at preliminary stages.
Portfolio Significance and Market Context
Associated British Ports operates 21 strategic maritime facilities across the United Kingdom, including major hubs at Southampton and the Humber estuary. The company handles approximately one-quarter of Britain's total seaborne trade, positioning it as a critical component of the nation's commercial infrastructure.
The potential divestment comes at a time when infrastructure assets are attracting substantial interest from private capital groups seeking stable, long-term returns. The sheer scale of this transaction, however, is expected to limit the pool of potential bidders to only the largest global infrastructure investors.
Ownership History and Current Structure
ABP was taken private in 2006 through a £2.8 billion acquisition by a consortium that included Goldman Sachs' infrastructure division and OMERS. CPPIB subsequently entered the ownership structure in 2015 through its acquisition of a significant stake.
Beyond the Canadian pension funds, other major shareholders include Singapore's sovereign wealth fund GIC with 20 percent ownership and the Kuwait Investment Authority's Wren House Infrastructure holding 10 percent. Asset manager Hermes, which controls approximately 6 percent of ABP, may also participate in the sale process according to some sources.
Strategic Positioning and Future Development
Beyond its core port operations, ABP has diversified into industrial real estate development and has been actively expanding its support services for renewable energy suppliers, particularly within the offshore wind sector. The company recently received regulatory approval to construct a new freight and ferry terminal at Immingham in northeast England.
Canadian Pension Fund Context
CPPIB, which manages approximately $777.5 billion in assets, established its London office in 2008 and maintains other significant UK investments including stakes in student accommodation provider Unite Students. OMERS, with $141 billion under management, previously held a major position in Thames Water but wrote off that investment in 2024 as the utility faced financial challenges.
Representatives from ABP Ports, CPPIB, OMERS, Hermes, and Morgan Stanley have all declined to comment on the potential transaction, maintaining confidentiality around the ongoing strategic review process.
