Two of Canada’s largest institutional investors are preparing to sell their controlling stakes in Associated British Ports (ABP), the United Kingdom’s leading port operator. Financial press in the UK reports that the Canada Pension Plan Investment Board (CPPIB) and the Ontario Municipal Employees Retirement System (OMERS) have engaged Morgan Stanley to explore a sale that could value the business at more than £10 billion (US$13.6 billion).
The potential transaction represents one of the largest infrastructure divestments in British history. It comes at a time of significant portfolio rebalancing for North American pension funds. While the process is in its early stages, a formal deal is expected to attract intense interest from global sovereign wealth funds and specialised infrastructure managers throughout 2026.
Strategic exit for long-term investors
CPPIB currently holds a 34% stake in ABP, while OMERS owns approximately 33% of the company’s equity. Together, the two Canadian giants control a majority of the operator, which oversees 21 seaports across England, Scotland, and Wales. Asset manager Hermes, which holds a smaller 6% stake, is also rumoured to be considering an exit as part of the wider sale process.
The move to divest follows a decade of significant growth for ABP under Canadian ownership. For OMERS, the sale offers a chance to crystallise gains and redeploy capital following a challenging period for some of its other UK infrastructure holdings. Analysts suggest that the funds are looking to lock in returns from mature assets to fund new ventures in emerging sectors like digital infrastructure and green energy transition.
A short list of potential buyers
The sheer scale of the £10 billion valuation limits the field of potential bidders to very well-capitalised financial investors, rather than global terminal operators focused on container ports. According to market observers, interest points toward existing minority shareholders as the most logical candidates to increase their control. Singapore’s sovereign wealth fund, GIC, already owns 20% of ABP, while the Kuwait Investment Authority’s infrastructure arm, Wren House, currently holds 10%. Both have demonstrated a long-term appetite for UK core infrastructure.
Another possibility is the British Columbia Investment Management Corporation (BCIMC), another pension management fund from Canada. BCIMC was reported to be in discussions with both the CPPIB and OMERS regarding a sale in 2023.
New interest is likely to come from heavyweights such as Macquarie Asset Management and Brookfield Asset Management. Macquarie recently announced a £20 billion investment program for UK infrastructure and has been active in the airport sector. Brookfield, meanwhile, has deep experience in the British maritime sector through its ownership of PD Ports, though it has recently begun its own partial divestment from that asset to recycle capital.
Further competition could emerge from Global Infrastructure Partners (GIP), now part of BlackRock, and Stonepeak Partners. The latter recently signalled its aggressive expansion into the global terminal market through a high-profile joint venture with French shipping giant CMA CGM. These firms are drawn to ABP’s inflation-linked cash flows and its dominant position in the UK’s trade gateways, which provide a defensive shield against broader economic volatility. Incidentally, CMA CGM recently moved into British onshore logistics, with the acquisition of British intermodal rail freight operators Freightliner UK.
Critical infrastructure at the heart of UK trade
Associated British Ports represents more than simply a custodial landlord. ABP is widely regarded as a critical engine of the British economy. The group handles roughly 25% of the UK’s seaborne trade, managing essential hubs such as the Port of Southampton and the vast Humber port complex, which includes Immingham, the busiest UK port by weight of goods in transit. These facilities are vital for the automotive, energy, and retail sectors, providing the primary entry points for millions of tonnes of cargo annually.
Beyond traditional stevedoring and cargo handling, ABP has successfully diversified into industrial property and renewable energy infrastructure. The company is currently a major player in the UK’s offshore wind sector, providing the land and quayside services necessary for the North Sea energy transition. This green energy “tilt” has significantly enhanced the company’s valuation, making it an attractive asset for institutional investors looking to meet climate targets.
As Morgan Stanley begins the exploratory phase of the sale, the UK government is expected to monitor the process closely. However, party political distractions over the tenure of the Prime Minister have already drawn criticisms that the government has its eye off the ball on this and other economically critical matters. Given ABP’s strategic importance to national security and trade, any buyer will likely face scrutiny under the National Security and Investment Act. However, the initial interest suggests that the UK remains a premier destination for global infrastructure capital despite recent shifts in the geopolitical landscape.