A major investment by the Canada Pension Plan Investment Board means most Canadians now own a little slice of Britain.
The CPPIB joined with investment firm Hermes to gain a one-third ownership of Associated British Ports, the biggest port operator in Britain. The Daily Telegraph reports the deal is worth 1.6 billion British pounds or $3 billion Canadian dollars.
The investment board manages $233 billion in retirement savings, investing it in businesses around the world in order to support the Canada Pension Plan. The Telegraph reports Canada's pension plan was not the only government backed body looking to scoop up British Ports.
Hermes and CPPIB saw off competition from Malaysia’s sovereign wealth fund, Dutch pensions investor APG and Korea’s national pension service. A third consortim featuring Abu Dhabi Investment Authority and 3i Infrastructure were also vying to take control of the ports in an auction process that began last year.
It is understood that Hermes and CPP entered exclusive negotiations last Thursday and worked on the finer points of the deal over the weekend.
The deal means Canadians pensioners and pension plan contributors now own 21 ports throughout Britain including the port of Southampton, famous as a destination for cruise ships.