Largest Australian cross border transaction in nearly a decade demonstrates scale and expertise
Industry super fund owned IFM Investors completed the purchase of U.S. energy company Buckeye Partners, over this weekend, Australian-time. It is the largest Australian cross border acquisition of a foreign company since BHP acquired Petrohawk in 2011 and the largest deal in the history of IFM, catapulting it to being one of the most significant owners of infrastructure in the world.
Six million working Australians who are members of industry superannuation funds and whose retirement savings are part-managed by IFM Investors will benefit from the transaction.
Buckeye’s critical energy infrastructure assets include 6,000 miles of pipeline, with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million barrels, and a network of marine terminals located primarily in the East and Gulf Coast regions of the United States, as well as in the Caribbean.
IFM Investors Chief Executive said today that the Buckeye deal was a strong long-term investment for millions of industry super fund members and a transformational acquisition for the firm.
“With our scale, reach and capability, IFM Investors and industry super funds are a significant exporter of capital. As long term stewards of critical infrastructure, IFM seeks to deliver great investment outcomes in a sustained and sustainable way for millions of working people here and around the world.”
Mr. Himbury said that IFM would actively lower carbon emissions at Buckeye to assist the firm navigate the next phase of the US and global energy revolution, and protect the value of the investment in the long term.
“In our experience, working to lower emissions is good for business and good for our investors.”
“As the largest owners of infrastructure in Australia, IFM has significant expertise now in responsible stewardship and we look forward to contributing more investment in infrastructure in Australia. Our priority is delivering great returns to members. We also know that long-term investment in infrastructure builds the productive capacity of the nation and generates employment. We are committed to meeting community standards as investors in infrastructure the public relies upon and continuing to partner with federal and state governments.”
