Last week, I initiated a position in Brookfield Infrastructure Partners LP (BIP) (BIP.UN.TO). Its a company that I’ve been watching for a while and was waiting for a good time to jump in. That moment showed up when Brookfield announced that it had reached a deal to acquire the Australian company Asciano Ltd, a rail and port logistics company, for US$6.6B. This deal will give BIP a 55% stake in the company. The remaining stake is divided as: 23% going to Brookfield Asset Management (BAM), BIP’s parent company; 11% stake going to British Columbia Investment Management Corp; – a Victoria, BC-based pension plan; and 11% of the stake going to the Government of Singapore.
Who owns Asciano Ltd after this deal
As blogger Freedom Thirty Five noted in his post last week, Australia and Canada share a lot of similarities. They are both resource rich economies that are facing financial headwinds due to the commodity market collapse. Both countries have a high standard of living, inflated housing market, similar currencies, etc. Canada’s largest trading partner is the US and Australia’s largest trading partner is China – current #1 and #2 economies of the world – who will eventually swap the #1 and #2 spots in the coming years. With a trading partner that big and other South Asian economies in the vicinity, investing in Australia is a great way to gain exposure to the emerging markets while staying invested in stable developed economies.