Canadian Investors Battle for Oz Port Assets


Canadian investment firm Canada Pension Plan Investment Board (CPPIB) is currently battling with Brookfield Asset Management to take control of Australian Port and Rail firm Asciano, after buying a 19.99% stake in the company, according to Bloomberg.

This offer shortly follows Brookfield’s bid of US$8.8 billion, which is the biggest foreign takeover proposed in Australia in 2015.

Foreign acquisitions of Australian companies in 2015 have jumped to $50.2 billion compared to $28.2 billion for all of 2014.

Evan Lucas, Market Strategist at IG, said: “Canadian investors have always seen value and stable returns here, particularly in infrastructure, logistics and agriculture assets. It also gives them exposure to Asia, without some of the risks of having to be in Asia.”

CPPIB, Canada’s largest pension fund, and New York-based investor Global Infrastructure Partners teamed up with Australian logistics operator Qube Holdings to take the stake in Asciano.

Brookfield previously announced its decision to acquire the entire issued capital of Asciano, underlying its intention to purchase transport infrastructure assets.

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