Deal values for global transactions of transport infrastructure assets including road operations, airports and ports have risen steeply since the beginning of the year showing 2013 is set to be a record year for transport infrastructure deals, analysis from M&A trends in transport infrastructure, KPMG Transport Perspectives, September 2013 has shown.
The first half of 2013 saw global deals of infrastructure assets worth $16.6billion, however, by the end of the third quarter, this figure had risen to $23.5billion which is already exceeding the total annual deal values for every year since 2008, the KPMG research shows.
Steffen Wagner, KPMG’s European Head of Transport M&A said: “There are three main drivers behind this trend: Public budget restraints across debt ridden countries especially in Europe have forced national governments to privatise national infrastructure and look for private operators and investors in order to secure the operation of strategic transport infrastructure and hub networks.
“Secondly, private investors like pension funds are constantly looking for investment opportunities with steady cash flows and growth prospects and transport infrastructure targets including ports and airports can offer these opportunities. Thirdly, strategic investors are increasingly investing in infrastructure assets, especially in emerging markets where growth forecasts are significantly above the mature markets in Western Europe and North America.”
Business opportunities in transport infrastructure
The majority of assets being acquired in 2013 have been in either Europe or Asia. This year alone the UK has seen major deals such as the acquisition of Stansted Airport by Manchester Airport Group for £1.5billion. The sale of a 9% stake in Heathrow airport by Spain’s Ferrovial to Universities Superannuation Scheme, one of the UK’s largest pension funds, for £395million also proved to be a huge benefit to the UK.
Transport infrastructure is now crucial in the UK and business opportunities are opening up daily in the sector.
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