Investment giant BlackRock is widening its maritime reach in a huge deal to buy Global Infrastructure Partners (GIP).
The $12.5bn takeover coincides with a shake-up of the fund’s top management.
BlackRock will pay $3bn in cash and the rest in its shares for GIP, which is a major ports and renewable energy investor.
The buyer will hold $150bn in infrastructure assets once the transaction closes.
“Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts reshape the global economy,” BlackRock chief executive Larry Fink said.
The giant company manages $10trn across all markets and has stakes in Frontline, Golden Ocean Group, GasLog, International Seaways, Ardmore Shipping and Eagle Bulk Shipping.
“This is [Fink’s] chance to put his final fingerprint on the company”, allowing it to compete with rivals such as Blackstone and Apollo Global Management, according to Kyle Sanders, an analyst at Edward Jones.
Founded in 2006, GIP manages more than $100bn in assets.
The portfolio includes the world’s sixth-largest global container terminals group, Terminal Investment Ltd, co-owned with MSC Mediterranean Shipping Company.
GIP also has stakes in Adnoc Gas Pipelines, Freeport LNG, offshore wind farms, Brisbane and Melbourne ports in Australia, and Peel Ports in the UK, as well as operating Italian rail company Italo with MSC.
Reuters has reported growing speculation over who will succeed Fink, who founded BlackRock in 1988.
Stephen Cohen has been appointed chief product officer to head a new global product strategy group, while Salim Ramji, global head of iShares and index investments, is leaving, according to a company memo seen by the news agency.
The group is setting up a new global structure, with Rachel Lord to lead Europe, the Middle East, India and Asia Pacific.
Five of GIP’s founding partners will join BlackRock, including chairman Bayo Ogunlesi.
