Canada’s Two Biggest Pension Funds Are Dumping Britain’s Largest Port Operator — Here’s Why the £10 Billion Exit Matters

CPPIB and OMERS have hired Morgan Stanley to sell their combined 67% stake in Associated British Ports — a deal that could reshape UK infrastructure ownership

Quick Answer: Why are Canadian pension funds selling Associated British Ports? Canada Pension Plan Investment Board and Ontario Municipal Employees Retirement System are selling their combined 67% stake in Associated British Ports in a deal expected to value the UK’s largest port operator at over £10 billion. Morgan Stanley has been hired to explore the sale, which could close in the second half of 2026. The exit comes nearly two decades after ABP was taken private for £2.8 billion, representing a massive return for the Canadian investors.

Two of Canada’s largest pension funds are preparing to exit their stakes in Associated British Ports, the UK’s biggest port operator, in a deal that could value the business at more than £10 billion.

The Canada Pension Plan Investment Board, which holds 34% of ABP, and the Ontario Municipal Employees Retirement System, which owns 33% through its infrastructure arm, have hired Morgan Stanley to explore a sale of their combined 67% majority stake, according to the Financial Times.

The deal, which is still in preliminary stages, could be finalised as early as the second half of 2026 and would rank among the largest UK infrastructure transactions in recent years.

A £2.8 Billion Bet That Paid Off

ABP was taken private in 2006 in a £2.8 billion deal that saw the company delisted from the London Stock Exchange. What was once a public company became a vehicle for long-term pension fund capital, exactly the kind of stable, inflation-linked infrastructure asset that Canadian funds have become famous for accumulating.

CPPIB entered ABP in 2015, acquiring its 33% stake alongside Hermes Infrastructure for approximately £1.6 billion. OMERS had been invested since the original 2006 privatisation through its Borealis Infrastructure arm.

A £10 billion valuation today would represent a near fourfold increase on the original privatisation price and a significant return for both Canadian investors. It would also mark one of the most successful UK infrastructure investments of the past two decades.

What Makes ABP So Valuable?

ABP is not a single port — it is a network of 21 ports across England, Scotland and Wales, including major facilities at Humber and Southampton. The company handles more than a quarter of all port industry volumes in the UK, making it a critical piece of national infrastructure.

The business model is what makes it attractive to pension funds. ABP operates as a landlord port, meaning it leases land and facilities to shipping companies, logistics operators and industrial tenants on long-term contracts. This generates predictable, inflation-linked cash flows — exactly what pension funds need to match their long-term liabilities.

Revenue has grown steadily since privatisation, with ABP benefiting from the UK’s reliance on maritime trade. Despite Brexit disruption and pandemic-related supply chain chaos, the business has demonstrated resilience that validates the original investment thesis.

The ports also sit on enormous land banks with development potential. Several ABP sites are being transformed into logistics hubs, renewable energy facilities and freeport zones, adding future growth to what has historically been a steady-income asset.

Why Sell Now?

The timing raises an obvious question: if ABP is such a good asset, why exit?

The answer lies in how pension fund portfolios work. CPPIB now manages over C$600 billion and OMERS manages over C$130 billion. Both funds have held ABP for a decade or more and are sitting on substantial unrealised gains.

Selling now allows them to crystallise those returns and redeploy capital into new opportunities. Canadian pension funds have been increasingly pivoting toward data centres, energy transition assets and Asia-Pacific infrastructure — sectors they believe offer higher growth potential over the next decade.

There is also a practical consideration. Infrastructure assets of this size rarely come to market. A £10 billion price tag limits the buyer pool to sovereign wealth funds, other mega pension plans and the largest infrastructure-focused private equity firms. The scarcity premium alone could push the final valuation even higher.

Who Could Buy?

The buyer shortlist for an asset of this scale and strategic importance is short.

Sovereign wealth funds are the most likely candidates. Singapore’s GIC is already an ABP shareholder and could increase its stake. Abu Dhabi Investment Authority, the Kuwait Investment Authority and Saudi Arabia’s Public Investment Fund all have active UK infrastructure programmes.

Large infrastructure funds run by Brookfield, Macquarie and Global Infrastructure Partners also have the firepower and appetite for port assets.

There is also the possibility of a consortium bid, with multiple investors combining to acquire the stake — replicating the model that brought the Canadian funds into ABP in the first place.

UK pension funds and insurance companies could also participate, particularly as the UK government has been encouraging domestic institutional capital to invest more in British infrastructure.

What It Means for the UK

The sale raises broader questions about foreign ownership of critical UK infrastructure. With Canadian funds exiting, ABP’s ownership will shift again — potentially to Middle Eastern or Asian sovereign wealth.

For the UK government, the priority will be ensuring operational continuity and investment commitments. ABP supports an estimated 84,000 jobs and handles billions of pounds worth of trade annually. Any buyer will face scrutiny under the National Security and Investment Act.

For investors, the deal signals that the UK’s infrastructure market remains highly attractive to global capital — even as political uncertainty around trade policy and regulation persists.

The £10 billion price tag also sets a new benchmark for UK port valuations, with implications for other infrastructure assets across the country.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.

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