Industry super fund-owned IFM Investors has completed a $10 billion purchase of US petroleum distributor Buckeye Partners, in what has been labelled as the largest Australian cross-border acquisition of a foreign company.
The deal has seen the Australian investment manager gain Buckeye’s energy infrastructure assets, including 6,000 miles of pipeline, 115 liquid petroleum products terminals with aggregate tank capacity of more than 118 million barrels and a network of marine terminals located in the East and Gulf Coast regions of the US, as well as in the Caribbean.
IFM investors chief executive Brett Himbury said the Buckeye acquisition was a strong long-term investment that would be transformational for the firm, with millions of industry super fund members to benefit.
He added IFM would work to actively lower carbon emissions at Buckeye, looking to the future of US and global energy and aiming to protect the value of the investment.
“With our scale, reach and capability, IFM Investors and industry super funds are a significant exporter of capital,” Mr Himbury said.
“In our experience, working to lower emissions is good for business and good for our investors."
Mr Hibury reported IFM is now the largest owner of infrastructure in Australia, with plans to buy more local assets.
“We know that long-term investment in infrastructure builds the productive capacity of the nation and generates employment,” he said.
“We are committed to meeting community standards as investors in infrastructure the public relies upon and continuing to partner with federal and state governments.”
IFM was said to have $152 billion in funds under management as at 30 September.
The fund manager has investment teams across Europe, the US, Australia and Asia.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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