The Canadian Press reports CPP Investments and OMERS selling Associated British Ports stakes to IFM Investors:

TORONTO — The Canada Pension Plan Investment Board and OMERS have signed a deal to sell their entire stakes in Associated British Ports to IFM Investors.

Financial terms of the sale were not disclosed.

ABP is Britain’s largest port operator with 19 ports in England, Scotland and Wales.

CPP Investments holds a 33.9 per cent interest in ABP, while OMERS owns 30.0 per cent.

IFM Investors is a global asset manager, owned by Australian pension funds and British pension fund Nest.

CPP Investments and OMERS first acquired their stakes in ABP in 2015 and 2006 respectively.

Kalbir Tawar of Briefs Finance also reports IFM takes 64% of Associated British Ports in deal valuing the company at about £10 billion:

 Summary:

• IFM Investors acquired a 64% holding in Associated British Ports
• The price implies about a £10 billion ($13.4 billion) valuation, per a person familiar with the figures
• Canada Pension Plan Investment Board and Omers exited, with holdings dating to 2015 and 2006

The deal and the price

IFM Investors bought a 64% interest in Associated British Ports, the UK's biggest port operator. A person with knowledge of the deal, who requested anonymity, said the purchase values the company at roughly £10 billion, or $13.4 billion, making it one of the year's largest UK transactions.

Who moved and who stayed

Canada Pension Plan Investment Board and Omers sold their holdings after investing since 2015 and 2006, respectively. Singapore's sovereign wealth fund GIC remains a shareholder. IFM won out over other contenders that Bloomberg News reported were in the hunt, including Apollo Global Management and KKR.

Assets and history

Associated British Ports counts 19 facilities, according to a Tuesday statement. It traces back to the 1980s privatization and listing of the British Transport Docks Board, and it was taken private in 2006 by a group that included Omers.

What IFM brings and timing

IFM already owns ports in Europe, including in Poland and Turkey, and its website says it oversees $96 billion in infrastructure investments. Its portfolio also includes Manchester Airports Group and Anglian Water, and ownership of the firm sits with 15 Australian pension funds together with the UK's National Employment Savings Trust. The AB Ports transaction remains subject to customary approvals from shareholders and regulators and is slated to close in the first half of 2027.

When major deals reshape who owns what, stay informed with the free Market Briefs newsletter and concise daily updates

Why it matters for investors

This ranks among the UK's largest transactions this year, appearing next to Nuveen's £9.9 billion purchase of Schroders Plc and to Apollo's £5.7 billion move to buy the budget airline EasyJet Plc. For portfolio builders watching infrastructure, IFM's move underscores ongoing demand for core transport assets that can deliver steady, regulated-like cash flows.

Because ownership shifts can affect long term plans, sign up for the free Market Briefs to get clear daily context 

Earlier today, CPP Investments and OMERS issued a joint press release stating they have reached an agreement to sell their entire stakes in Associated British Ports to a fund managed by IFM Investors:

London, U.K. – Canada Pension Plan Investment Board (“CPP Investments”) and OMERS today announced they have agreed to terms with a fund managed by IFM Investors to sell each of their respective 33.9% and 30.0% stakes in Associated British Ports (“ABP”). CPP Investments and OMERS initially acquired their stakes in 2015 and 2006 respectively. Completion of the transaction is subject to stakeholder review and approval processes. Financial terms are not disclosed.

ABP is a leading ports group, the largest in the UK, providing essential gateways for trade and enabling green infrastructure essential for the UK’s energy transition. As the operator of 19 facilities, the business handles approximately 25% of UK seaborne trade. ABP provides support for over half the UK’s offshore wind and catalyses investment, good jobs and prosperity in coastal communities.

Kyle Mangini, Global Head of Infrastructure, IFM Investors, said: “We are pleased to have reached an agreement where a fund managed by IFM would acquire a majority stake in ABP, the UK’s largest ports group with strategically located assets serving some of the country’s most important trade and industrial regions. We look forward to supporting continued development of ABP’s infrastructure and operations, drawing on IFM’s long-term investment approach and experience across ports and other essential infrastructure assets. As an investor owned by Australian and UK pension funds, this transaction reflects our longstanding commitment to mobilising pension capital into UK infrastructure. We are excited to work closely with ABP’s management team, employees and our fellow shareholders to support the company’s continued success.”

James Bryce, Managing Director, Head of Infrastructure, CPP Investments, said: “We are proud to have supported ABP for over a decade, during which time it has continued to operate and develop the critical infrastructure that underpins trade across the U.K. I would like to take this opportunity to express my thanks to the management team, employees across the country, the Board and fellow investors for their hard work and partnership throughout our period of ownership. ABP is a high-quality business which has an extremely important role to play supporting the U.K. economy in the years ahead and we are confident it will continue to thrive under new ownership. This transaction represents an attractive opportunity to realize the value of our long-term investment and recycle capital into new opportunities, helping us deliver strong long-term returns for CPP contributors and beneficiaries.”

Luca Lupo, Senior Managing Director and Head of Europe, OMERS Infrastructure, said: “We are proud to have supported ABP over the past 20 years, working alongside fellow shareholders and management to grow and strengthen one of the UK’s critical infrastructure businesses. During our ownership and with our support, ABP has continued to invest in its ports, support UK trade and develop new opportunities linked to the energy transition, including through major projects such the Immingham Renewable Fuels Terminal, Green Port Hull and Southampton's Horizon cruise terminal. I would like to thank the management team, employees and fellow shareholders for their contributions and wish them continued success. The UK remains a priority market for OMERS Infrastructure, and we are actively exploring new opportunities to invest in high-quality infrastructure businesses across the country.”

Henrik L. Pedersen, CEO of Associated British Ports, said “Today marks a bold new chapter for ABP. Since my arrival at ABP eight years ago, I have experienced firsthand the support for our business and the execution of growth opportunities provided by CPP Investments and OMERS. On behalf of the entire company, I would like to extend my profound appreciation for their partnership. Attracting investment from a fund managed by IFM Investors is a powerful endorsement of our business, our people and our strategy. We are excited to unlock further growth opportunities, together with IFM Investors and our other shareholders, continuing ABP's long-term investment benefitting our customers, our local communities, and the UK.”

The transaction is subject to customary shareholder and regulatory approvals and is expected to complete in H1 2027.
 

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

 About OMERS Infrastructure

OMERS Infrastructure manages infrastructure investments globally on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada, and third-party investors through its Strategic Partnership Program. OMERS Infrastructure manages approximately C$40.9 billion, including capital invested on behalf of OMERS and third parties, in approximately 30 investments located in North America, Europe & Asia-Pacific, across sectors including energy, digital and transportation. OMERS Infrastructure has employees in Toronto, New York, London, Amsterdam and Sydney.

About IFM Investors

IFM Investors is a global asset manager, founded and owned by Australian pension funds and the UK pension fund, Nest, with capabilities in infrastructure equity and debt, private equity, private credit, real estate and listed equities. Our purpose is to invest, protect and grow the long-term retirement savings of working people. With assets under management of approximately GBP £157 billion as of 30 September 2026, we serve over 900 institutional investors worldwide, operating from 16 offices across Australia, Europe, North America and Asia. 

This is another big infrastructure deal for OMERS and CPP Investments, selling a prized UK asset to IFM.

The timing of this deal, a little over a month after the Canada Investment Summit, which IFM attended, shouldn't surprise you.  

I'm not saying this deal happened in a little over a month -- early discussions likely took place prior to the summit, around the time Canadian and Australian pensions formalized the CAP Invest initiative -- but I am sure that high-level discussions also took place at the summit as this deal was being finalized.

So, why are OMERS and CPP Investments selling their respective stakes in Associated British Ports (ABP)?

They received a fair offer from IFM and, as CPP Investments' James Bryce noted in the press release,  they are going to use the proceeds to recycle capital in infrastructure where they see opportunities:

"...This transaction represents an attractive opportunity to realize the value of our long-term investment and recycle capital into new opportunities..." 

The key question is where they are going to invest: outside Canada or within Canada as the federal government speeds up its plans to privatize the operations of airports, ports, and energy assets?

That, I do not know.

What I do know is the enterprise value of Associated British Ports is £10 billion (about $13.4 billion USD), based on this agreement so both CPP Investments (34% stake) and OMERS (30% stake) are going to receive a significant amount to recycle back into infrastructure investments.

Below, ABP handles more than £150 billion of UK trade every year and our network includes 21 ports around the UK. Arteries for international trade, our ports connect the nation’s importers and exporters to global markets. Learn more by watching this clip.

Also, Ports play a vital role in shaping a sustainable, net zero future — both as critical infrastructure and as hubs for clean energy innovation. As the UK’s largest port operator, Associated British Ports (ABP) is leading the charge by decarbonising its own operations and enabling large-scale renewable energy projects across the country.

Third, Max Harris, group head of strategy and sustainability at Associated British Ports, the largest ports operator in the United Kingdom, explains how the company is using tech to accelerate the energy transition across industrial sectors—and create new business models.

Bryan McGovern of Benefits Canada reports Canada’s sustainable finance taxonomy group publishes final methodology report: 

A working group tasked with establishing Canada’s voluntary sustainable finance taxonomy to establish and define green and transition investment categories has released its final methodology report.

The new report indicates another step forward for the organization, which collected responses during a public feedback period, and now sets up the development of technical screening criteria and guardrails for specific sectors — electricity, buildings, transportation, mining, manufacturing and forestry or agriculture — by the end of 2027.

Marlene Puffer, chair Canadian taxonomy and transition planning council, says the team received nearly 200 submissions during the public response opportunity. 

“The ambition remains confirmed [and] that is net-zero by 2050 aligned with the Paris Agreement. We have very clear objectives [and] principles [and] an approach to social and environmental safeguards that has been clarified and refined.”

The proposed taxonomy will rely on credibility, usability and interoperability as its three design principles, while adaptability, regional specificity and good governance will guide its implementation principles.

At a time when political attacks on the role of sustainable investing are taking place amid an apparent backtracking on ESG trends, Puffer says sustainability is still front and centre for institutional investors in terms of the analysis done behind the scenes. 

“As investors with long investment horizons, they have no choice but to incorporate analysis around the sustainability of every investment that they make and to clearly understand its exposure to things like climate change. It’s not just a risk mitigation perspective that they’re taking but an opportunistic perspective as well.”

Jonathan Arnold, head of sustainable finance at the Canadian Climate Institute and lead researcher for the working group, says the report brings clarity on the framework used for the sectoral work that’s already underway.

“This is a huge milestone for us, as well as for the initiative more broadly. This is the foundation of all the work [arriving] in the coming months and years. We’ve been very intentional about how we’ve designed this framework and we’re already starting to see the benefits of how we’ve laid it out in terms of how we’re developing the technical screening criteria.” 

Business Future Pathways also reports the new taxonomy milestone paves the way for climate investment in Canada: 

Final Methodology Report establishes the foundation for a credible sustainable finance taxonomy that will mobilize capital and boost economic competitiveness. 

• The final Methodology Report for Canada’s sustainable finance taxonomy establishes and defines green and transition categories to clarify and spotlight climate-aligned investment opportunities across the economy. 
• The methodology reflects global best practices and the uniqueness of Canada’s economy, geography, and legal framework, including Indigenous Rights.
• Work is now underway to develop technical screening criteria and guardrails for major sectors, starting with electricity, buildings, and transportation. 

OTTAWA (October 20, 2026) — Today the Taxonomy and Transition Planning Council released its final Methodology Report, which sets the foundation and direction for a credible, usable, and internationally-aligned Canadian Sustainable Finance Taxonomy.  

The report confirms many of the taxonomy’s core elements: its objectives, principles, approach to social and environmental safeguards, as well as inclusion of the green and transition categories and their respective definitions.  

It also provides direction on the decisions that remain. For example, it determines that the abatement measures category will undergo feasibility research to determine if and/or how it will be added to the taxonomy’s framework. Council found that there was not yet sufficient information to either include or exclude the abatement category and has directed further research to understand whether or not it could support and align with the taxonomy’s mission, ambition, and principles. The report also clarifies that the general criteria for environmental and social safeguards, including those with respect to Indigenous Rights, will be proposed for feedback in the next stage of this process.  

A taxonomy works as a voluntary guidebook for sustainable investment. It establishes credible, science-backed definitions for economic activities that align with climate goals. Taxonomies help mobilize capital for the shift to a low-carbon economy by creating market clarity, addressing greenwashing, and increasing investor confidence.   

The decisions reflected in the final Methodology Report were informed by the best available global evidence, ongoing input from the Taxonomy and Transition Planning Council and its 70 expert advisors, close to 200 public feedback submissions, and perspectives offered by representatives of over 30 Indigenous organizations.  

With this foundation in place, the next step is to develop technical screening criteria and guardrails for Canada’s electricity, buildings, transportation, mining, manufacturing, and forestry/agriculture  sectors by the end of 2027. The Canadian Climate Institute, which serves as the taxonomy’s research custodian, has already established technical working groups  for the first three sectors that bring together diverse expertise and perspectives from each sector to inform the development process.   

The sectoral criteria will provide specific direction for each sector. For example, they will specify what counts as a “near-zero” activity in the green category, what constitutes a “dead-end pathway” in the transition category, and whether specific activities (e.g. nuclear, data centres, carbon removals, etc.) will be included, and under what conditions. Business Future Pathways will publish draft sectoral criteria for public feedback later this winter.  

Quote 

“While we still have a lot of work ahead of us, the Methodology Report marks a significant milestone for sustainable finance in Canada. This strong foundation sets us on course to deliver the credible, usable, interoperable taxonomy that investors need to confidently invest in Canada’s needs and opportunities, aligned with the path to net zero by mid-century.” 

  – Marlene Puffer, Chair, Canadian Taxonomy and Transition Planning Council  

Media requests 

For background information or to arrange an interview, please contact Jessie Sitnick.

Phone: (204) 674-4905  | Email: communications@BusinessFuturePathways.ca 

Resources 

• • Report| Canadian Sustainable Finance Taxonomy: Methodology Report (final)
  • Backgrounder | Final Methodology Report – Decisions and Updates
  • Report| What We Heard 
  • Blog | What We Learned:  Five Lessons from the Sustainable Finance Taxonomy’s First Public Feedback Period 

About Business Future Pathways 

Business Future Pathways brings together financial and technical expertise to establish and advance the foundations for sustainable investment in Canada. Governed by the independent Canadian Taxonomy and Transition Planning Council, Business Future Pathways, provides practical made-in-Canada sustainable investment guidelines and transition plan guidance to help mobilize investment in Canada’s clean growth and transition priorities.  

About Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada’s net zero energy transition, and making our economy and infrastructure more resilient to a warming climate. The Institute is leading the technical research and advice for the development of Canada’s sustainable investment guidelines. 

Business Future Pathways and the Canadian Climate Institute gratefully acknowledge the Government of Canada’s financial support for the development of Canada’s Sustainable Finance Taxonomy. 

This Methodology Report represents a huge milestone for Canada, and I want to begin by congratulating everyone involved in producing it.

The who's who in Canadian sustainable investing/ climate change policy helped produce the final report, and they input all the feedback they received.

Marlene Puffer, Chair, Canadian Taxonomy and Transition Planning Council, summed it up nicely: 

“While we still have a lot of work ahead of us, the Methodology Report marks a significant milestone for sustainable finance in Canada. This strong foundation sets us on course to deliver the credible, usable, interoperable taxonomy that investors need to confidently invest in Canada’s needs and opportunities, aligned with the path to net zero by mid-century.” 

And Barbara Zvan, President and CEO of UPP, posted this on LinkedIn:

International investors are demanding a comprehensive, coherent sustainable finance taxonomy for all countries they invest in, and this report will facilitate this, making it easier for international investors to invest in Canadian public and private companies.

When investors and companies speak one language on sustainable finance and are aligned, it makes everyone's job a lot easier. 

You can read the final report here and I provide an overview below:

The Canadian taxonomy is a voluntary tool to identify projects and economic opportunities that are credibly aligned with the country’s path to achieving net zero emissions by mid-century.  Designed to improve market clarity and confidence, the taxonomy will help accelerate capital flows to activities that are aligned with climate science and Canada’s decarbonization priorities through multiple avenues—whether it is through underpinning the issuance of labelled financial instruments (e.g., green and transition bonds), supporting investment analysis, or providing a standardized framework for financial institutions to track their financing and corporations to track their capital and operating expenditures. A made-in-Canada taxonomy will strengthen credibility and interoperability (i.e., harmonization) of investments with global peers and it will do so while reflecting the reality of Canada’s economy, geography, and subsequent emissions reduction imperatives. 

This Methodology Report provides the foundation of Canada’s sustainable finance taxonomy, informing its future development and implementation. It outlines the taxonomy’s objectives, principles, ambition, scope, and safeguards as well as its categorization framework and approach to developing sectoral technical criteria.  

You can also read the executive summary below:

I'm far from an expert on sustainable finance but the section that truly interested me the most was 3.0 on page 26: Defining the taxonomy’s categories:

Anyway, take the time to read this report, it's packed with great information and will provide useful guidelines for investors and companies. 

There is still more work ahead but this is a huge milestone, congratulations to everyone involved. 

Below, without clear standards, investors face a fragmented approach to climate investing—limiting the flow of capital needed to fund Canada’s transition. In this episode of Sustainability Leaders, John Uhren, Global Head of Sustainable Finance at BMO Capital Markets, speaks with Marlene Puffer, Chair of the Canadian Taxonomy and Transition Planning Council at Business Future Pathways, about how a sustainable finance taxonomy can bring consistency, credibility, and scale to climate investment.

Marlene explains how a taxonomy classifies economic activity into categories to better direct capital—particularly toward hard‑to‑abate sectors such as steel and energy. The conversation explores why Canada needs to attract significant new investment to meet net‑zero goals, how global examples are already mobilizing capital at scale, and how a clear, science‑based framework can improve transparency, attract foreign investment, and support more effective allocation of capital across the economy (January, 2026).

Also, Julie Segal, Environmental Defence Canada, discusses the credibility of the taxonomy and whether it truly aligns witht he best available science (one of many perspectives).

Lastly, what does it mean for Canada's "green" finance rules to actually be green? And why are fossil fuels knocking at the door? Watch Jessica Carradine, Climate Finance Consultant at Environmental Defence Canada, as she unpacks one of the most important climate policy fights happening right now — keeping fossil fuels out of Canada's sustainable taxonomy.

Shania Thomas of Reuters reports Silgan and American Industrial to buy Trivium Packaging in $3.4 billion deal: 

Silgan Holdings (SLGN) and private equity ​firm American Industrial Partners said on Monday they would buy Trivium Packaging ‌in a $3.4 billion deal, as the US consumer goods packaging maker looks to expand its footprint in Europe. Silgan, whose customers include Campbell (CPB) and Coca-Cola (KO) makes metal cans and dispensing products such as lotion ​pumps. Netherlands-based Trivium makes recyclable packaging material and is currently owned by ​Ontario Teachers' Pension Plan and Ardagh Group SA.

The deal will combine Silgan's ⁠metal businesses with Trivium, creating a global metal packaging business valued at $7.3 billion, according ​to the companies.

"Trivium is much more focused and has a much larger presence in ​Europe. So you kind of get that geographic benefit of both, and as we think about our increasingly global customers, we think that's a great way to serve a global customer base," said Adam ​Greenlee, CEO of Silgan Holdings, on a call with analysts. Silgan shares, which had fallen about ​6% this year through Friday's close, were up about 9% in afternoon trading. Higher raw material costs due ‌to ⁠inflation and geopolitical tensions have been squeezing margins for packaging makers, some of which have turned to acquisitions and portfolio reshaping to boost profitability amid weak demand.
Earlier this month, International Paper (IP) said it was evaluating potential bids for its Europe, Middle East and Africa ​packaging business. Under the Trivium ​deal, American Industrial ⁠Partners will invest about $1 billion for a 40% stake in the combined metal packaging business, while the partnership will generate about $2.3 billion ​in cash proceeds for Silgan, which will retain a 60% ​stake in ⁠the venture. "This combination makes sense because it creates opportunities to take costs out of the business and improve margins without relying on a rebound in demand," eMarketer analyst Suzy Davidkhanian ⁠said. The deal, ​which is expected to close in mid-2027, comes ​after Silgan signaled interest in taking over German medical packaging maker Gerresheimer in March. Gerresheimer rejected the takeover bid, Reuters reported ​in April.

Gary Larkin of Westfair Business Journal also reports Norwalk’s Silgan Holdings, private equity firm to buy Dutch Trivium Packaging:

NORWALK – Silgan Holdings Inc. has teamed up with a private equity firm to propose a $3.4 billion purchase of Netherlands-based Trivium Packaging B.V. The acquisition would combine Silgan’s Metal Containers segment and Food and Beverage Flat Cap Closures businesses with Trivium to create Silgan Metal Containers and Closures (Silgan MCC).

Silgan, a leading global supplier of sustainable rigid packaging solutions for consumer goods products, is working with funds affiliated with American Industrial Partners to complete the transaction. Trivium is a metal packaging manufacturer with innovative shaping and opening solutions primarily for consumer goods.

The acquisition will create a $7.3 billion diversified global metal packaging business providing recyclable solutions for food and beverage markets. It will also create two packaging platforms: metal packaging and dispensing solutions.

“This strategic portfolio acceleration reflects our commitment to value creation through deliberate portfolio construction and strategic capital deployment, enabled by the strength of our businesses and our exceptional teams,” said Adam Greenlee, president and CEO Silgan (featured above). “We have tremendous respect for Trivium and its employees and believe this combination creates an even more differentiated global partner for food and beverage packaging customers.”

In connection with the formation and capitalization of Silgan MCC, Silgan will receive approximately $2.3 billion of cash proceeds, which will be used to retire certain existing debt, and retain 60% controlling ownership interest in Silgan MCC.

AIP will own the remaining 40% interest and contribute approximately $1 billion of cash equity to support the acquisition and future growth of the business. The remaining Silgan MCC capitalization will be provided by debt financing, and the partnership will establish an independent balance sheet that will be fully consolidated into Silgan’s financial statements.

“Since 2019, Trivium has been a trusted provider of recyclable metal packaging products, serving over 800 customers around the globe,” said Michael Mapes, CEO of Trivium (featured above). “This transaction with Silgan and AIP marks the next step in our evolution, as we collectively continue to deliver valuable packaging solutions to our customers and millions of consumers around the world.”

Silgan’s Dispensing and Custom Containers businesses will be combined into one segment and remain wholly owned by Silgan. The new segment, which will be named Silgan Dispensing Solutions, will operate as a premium specialty packaging platform serving attractive end markets with differentiated products.

“Silgan and Trivium are exceptional companies with strong track records, and we are excited to partner with them to help execute this value-creating transaction and capture attractive opportunities for the combined business,” said Dino Cusumano, managing partner of AIP. “We look forward to working with the Silgan and Trivium teams to enhance the combined value proposition for customers.”

Transaction details

The proposed acquisition of Trivium, which has been unanimously approved by the Silgan Board of Directors, is expected to close mid-2027 and is subject to required regulatory approvals, completion of applicable works council consultation processes, and satisfaction of other customary closing conditions.

In support of the proposed transactions, Silgan MCC has obtained debt financing from a consortium of banks, as well as a cash equity contribution from funds affiliated with AIP.

Upon completion of the transaction, the Board of Directors of Silgan MCC will be comprised of three directors nominated by Silgan: Anthony Allott, Adam Greenlee, and Shawn Fabry, as well as two directors nominated by AIP. Silgan’s headquarters will remain in Norwalk. 

Today, Ontario Teachers’ Pension Plan announced the sale of Trivium Packaging:

Toronto, October 19, 2026 – Ontario Teachers’ Pension Plan (“Ontario Teachers’”) has entered into an agreement to sell its stake in Trivium Packaging B.V. (“Trivium”) to Silgan Holdings Inc. (NYSE: SLGN) (“Silgan”) and funds affiliated with American Industrial Partners (“AIP”). The transaction values Trivium at approximately $3.4 billion. Under the terms of the agreement, Ontario Teachers’ will fully exit the business.

Trivium is a provider of recyclable metal packaging products that serves over 800 customers globally. Ontario Teachers’ originally invested in Exal in 2010, at a time when the company operated six facilities, and subsequently grew it through a merger with a larger metal packaging business. The merger brought together complementary capabilities in aluminum and steel packaging and helped to build and scale the company into one of the leading global metal packaging businesses. Today, Trivium operates 57 locations spanning 18 countries across the Americas, Europe, Asia, and Africa, and has approximately 7,200 employees worldwide.

“We have been investors in and partners to Trivium for 16 years. Our focus has been on supporting the business to strengthen its operations, serve its customers, and build for the long term,” said Greg Nielsen, Senior Managing Director, Private Capital, Ontario Teachers’. “We are confident that Silgan and AIP are well positioned to support Trivium as it enters this next chapter.”

“Since 2019, Trivium has been a trusted provider of recyclable metal packaging products, serving over 800 customers around the globe. This transaction with Silgan and AIP marks the next step in our evolution, as we collectively continue to deliver valuable packaging solutions to our customers and millions of consumers around the world,” said Michael Mapes, Chief Executive Officer of Trivium. “With Silgan and AIP’s support, we will operate with increased scale and reach to advance our vision of delivering high-quality, innovative, and recyclable packaging products to consumers.”

The proposed acquisition is expected to close mid-2027 and is subject to required regulatory approvals, completion of applicable works council consultation processes, and satisfaction of other customary closing conditions.

Evercore is serving as lead financial advisor to Trivium and its shareholders. J.P. Morgan and BMO Capital Markets are also serving as financial advisors in connection with the transaction. Weil, Gotshal & Manges LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel to Trivium and its shareholders.

Ardah Group also announced the sale of its minority stake in Trivium Packaging

LUXEMBOURG, Oct. 19, 2026 /PRNewswire/ -- Following the decision of Ontario Teachers' Pension Plan to sell its majority stake in Trivium Packaging B.V. ("Trivium") to Silgan Holdings Inc. (NYSE: SLGN) ("Silgan") and funds affiliated with American Industrial Partners ("AIP"), Ardagh Group, as minority joint venture partner, has entered into the agreement to sell its entire ~42% stake in Trivium. The transaction values Trivium at approximately $3.4 billion.

Trivium is a supplier of metal packaging in the form of cans and aerosol containers, serving a broad range of end-use categories, including food, seafood, pet food and nutrition, as well as beauty and personal care. Trivium recorded revenues of $3 billion in 2025. For more information, visit www.TriviumPackaging.com.

The proposed sale is expected to close in mid-2027 and is subject to required regulatory approvals, completion of applicable works council consultation processes, and satisfaction of other customary closing conditions. The transaction is expected to result in estimated net cash proceeds to Ardagh Group of approximately $90 million, which are expected to be used towards reinvestment in the business or deleveraging.

Mark Porto, Executive Chairman of Ardagh Group, said:

"The sale agreement of Ardagh Group's minority investment stake in Trivium represents a favourable outcome for all stakeholders. Trivium's combination with Silgan creates a highly complementary business. For Ardagh Group, the disposal of a non-core investment helps to simplify our overall business and organisational structure, with the net cash proceeds expected to be used towards reinvestment in the business or towards debt reduction."

Evercore is serving as lead financial advisor to Trivium and its shareholders. J.P. Morgan and BMO Capital Markets are also serving as financial advisors in connection with the transaction.

Weil, Gotshal & Manges LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are serving as legal counsel to Trivium and its shareholders.

About Ardagh Group

Ardagh Holdings S.A. is the ultimate parent company of Ardagh Group, which is a global supplier of inherently recyclable metal beverage and glass container packaging for brand owners around the world. Ardagh Group operates 58 metal and glass production facilities in 16 countries, employing approximately 19,000 people with sales of approximately $9.6 billion.

This is a big deal to kick off the week and shows you how OTPP Private Capital and Ardagh Group nurtured Trivium Packaging into a great company over the years and just sold it to Silgan Holdings Inc. and American Industrial Partners for $3.4 billion (including debt).

It is worth reiterating what Greg Nielsen, Senior Managing Director, Private Capital, Ontario Teachers’, states in the press release:

“We have been investors in and partners to Trivium for 16 years. Our focus has been on supporting the business to strengthen its operations, serve its customers, and build for the long term. We are confident that Silgan and AIP are well positioned to support Trivium as it enters this next chapter.”  

This isn't a quick deal; they held the company for 16 years and helped it grow organically and through acquisitions. 

That's what really good private equity is all about. Unlike private equity funds that look to sell their stake in a company in four years to raise money for their next fund, a pension fund can take a really long view and hold a private company on its books for a very long time and sell it when the right strategic acquirer comes along.

That's what happened here.

This transaction also highlights the hard work of OTPP's Portfolio Solutions team, headed up by Kevin Kerr. 

It's their job to value these assets properly and see if they are ready for an exit. 

Financial details were not disclosed at OTPP but the Ardagh Group disclosed this in its press release:

The transaction is expected to result in estimated net cash proceeds to Ardagh Group of approximately $90 million, which are expected to be used towards reinvestment in the business or deleveraging. 

That just tells me there was a pile of debt on Trivium's books which is normal given the industry it operates in.

I also note this from one of the articles above:

In connection with the formation and capitalization of Silgan MCC, Silgan will receive approximately $2.3 billion of cash proceeds, which will be used to retire certain existing debt, and retain 60% controlling ownership interest in Silgan MCC.

AIP will own the remaining 40% interest and contribute approximately $1 billion of cash equity to support the acquisition and future growth of the business. The remaining Silgan MCC capitalization will be provided by debt financing, and the partnership will establish an independent balance sheet that will be fully consolidated into Silgan’s financial statements. 

Alright, that's it from me on this Monday, October 19th.

Below, a behind-the-scenes look at the highly coordinated manufacturing process at Trivium Packaging in Roanoke County, Virginia! Trivium produces metal cans for everyday products used by customers across North America, combining precision engineering, advanced manufacturing, and a highly skilled workforce. 

Also, an older 2023 Davos interview with Trivium Packaging CEO Michael Mapes worth listening to. 

Mary Cunningham of CBS News reports tech stocks tumble as AI debt fears rattle Wall Street:

Financial markets slumped on Friday as investors bailed on technology stocks amid concerns that companies exposed to artificial intelligence are starting to wobble. 

The tech-heavy Nasdaq Composite tumbled 573 points, or 2.1%, to end at 26,140, closing out its worst week since June. The broader S&P 500 and blue-chip Dow Industrial Average sank 1.1% and 0.3%, respectively.

Chipmakers and other tech companies have been under pressure this week as investors worry about the heavy borrowing associated with the emergence of AI and the rapid buildout of thousands of data centers required to provide computing power for AI models.

So-called neocloud companies like CoreWeave, which provide the brute computing power AI models need to function, were particularly hard hit. That's because they are financing much of their capital expenditures through debt and equity issuance rather than cash flow, raising investor concerns about mounting debt, market analyst Adam Crisafulli, head of Vital Knowledge, told CBS News.

Shares of CoreWeave slid nearly 12% on Friday and dropped roughly 24% this week as investors nervously eye its mounting debt. Micron Technology fell 5.6%, Advanced Micro Devices dropped 6%, Broadcom was down 4.5% and Intel lost 5.8%.

Elsewhere on Wall Street, Tesla shares fell 2.1% after the electric vehicle company unveiled a new Roadster sports car that appears capable of thrusting itself into the air.

The downturn on Friday came amid concern about whether the AI company Anthropic, soon set to go public, will be able to maintain its revenue momentum, Crisafulli said in a note to investors. Anthropic investors are now considering valuing the company at $1.5 trillion, down from the original target of $2 trillion, Reuters reported on Thursday. 

Sean Conlon and Justina Lee of CNBC also report the Nasdaq slides 2% Friday to post worst week since June, pressured by AI sell-off and oil prices: 

Stocks slid on Friday as traders notched a mostly losing week amid a shift away from tech and artificial intelligence-related names as well as a rise in oil prices.

The S&P 500 lost 1.09% and ended at 7,659.44, while the Nasdaq Composite shed 2.14% to close at 26,140.03. Both indexes ended the session below their 50-day moving averages. The Dow Jones Industrial Average fell 175.28 points, or 0.34%, to 52,002.41. The sell-off sent the Cboe Volatility Index (VIX) above 22 for the first time in four months.

Chipmakers were lower again. The VanEck Semiconductor ETF (SMH) lost 3%, led by declines in Micron Technology, Advanced Micro Devices and Sandisk. Semiconductors have struggled this week amid jitters about competition from China. The SMH slid 10% week to date for its biggest weekly decline since April 2025.

Those declines, coupled with drops in other stocks linked to AI, dragged the S&P 500 to a losing week. The benchmark index fell about 2% this week, while the Nasdaq shed more than 4% for its worst week since June. The Dow, on the other hand, advanced 0.7% on the week.

Investors have also grown concerned that tech companies are borrowing too much for the AI buildout. Shares of neoclouds like CoreWeave, which has seen its total debt rise to more than $51 billion, were down nearly 12%, bringing the stock’s week-to-date losses to 25%.

“The question is: Is this a systemic issue?” said Michael Rosen, Angeles’ chief investment officer. “Obviously, increased debt issuance is something to observe and continue to watch and be concerned about if it continues to get to levels of excessiveness. But we’re not remotely close to that right now.”

Other areas of the market such as energy saw gains Friday, with stocks like Chevron helping to keep the Dow’s losses in check. Oil prices moved higher amid rising tensions between the U.S. and Iran as well as between Russian and Ukraine. West Texas Intermediate crude futures increased 3.51% to settle at $101.41 per barrel, while Brent crude futures advanced 3.72% to $109.86.

Simultaneously, investors have been grappling with hotter-than-expected inflation data, which has been exacerbated by elevated energy prices in the wake of the U.S.-Iran war. Wholesale inflation this week saw its biggest gain since 2022, while consumer inflation remained well above the Federal Reserve’s target of 2%.

Fed Chairman Kevin Warsh spoke at an IMF event in Bangkok overnight. And while he didn’t comment on whether the Fed would raise rates before year-end, traders took that as a sign that the central bank will hold policy steady later this month. The CME Group’s FedWatch tool points to an 82% chance the Fed keeps its overnight rate unchanged at its Oct. 27-28 meeting. 

Rich Asplund of Barchart also reports stock indexes finish sharply lower as tech stocks plunge:

The S&P 500 Index (SPY) closed down by -1.09% on Friday, the Dow Jones Industrial Average (DIA) closed down by -0.34%, and the Nasdaq 100 Index (QQQ) closed down -2.50%.  December E-mini S&P futures (ESZ26) fell -1.14%, and December E-mini Nasdaq futures (NQZ26) fell -2.51%.

Stock indexes sold off sharply on Friday, with the S&P 500 falling to a 2-week low and the Nasdaq 100 dropping to a 1-month low.  Selling in chipmakers and AI-infrastructure stocks led the market lower on Friday, driven by concerns about whether companies will see returns on their huge investments in the AI infrastructure buildout.  Also, CoreWeave sank more than -11% to weigh on cloud infrastructure stocks as concerns about the company’s credit risk linger.

Stock losses accelerated Friday afternoon as crude oil prices soared more than 3% to a 1-month high, raising inflation expectations and fueling fears the Fed will keep raising interest rates to contain inflation. 

Higher bond yields undercut stocks after Fed Chair Warsh made no remarks on monetary policy or his outlook for the US economy late Thursday evening at the IMF annual meeting in Bangkok.  The 10-year T-note yield rose +1 bp to 5.09%.

Friday’s US economic news was mixed for stocks.  The Sep import price index ex-petroleum rose +0.8% m/m, stronger than expectations of +0.6% m/m, the largest increase in 5 months and a sign of price pressures.  However, Sep manufacturing production rose +0.3% m/m, right on expectations.

Stocks have support from the prospect of solid quarterly earnings results that began this week.  Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.” According to data compiled by Bloomberg Intelligence, Q3 S&P 500 earnings are expected to climb by +25% from a year earlier, up from a July estimate of 22%.  As of Friday, 40 of the S&P 500 companies have reported results, with 78% beating estimates.

Nov WTI crude oil prices (CLX26) surged more than +3% on Friday to a 1-month high.  Crude prices rallied on Friday amid a weaker dollar and concerns that escalating Middle East hostilities could disrupt regional energy supplies.  Prices race to their highs Friday afternoon after US lawmakers introduced a bill to block President Trump’s deal with Russia to release several hundred million barrels of diesel fuel. 

Markets are discounting a 17% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.

Overseas stock markets settled higher on Friday.  The Euro Stoxx 50 closed up +0.58%.  China's Shanghai Composite closed up +0.24%.  Japan's Nikkei-225 Stock Average closed up +1.39%.

Interest Rates

December 10-year T-notes (ZNZ6) closed down -2.5 ticks on Friday.  The 10-year T-note yield rose +2.7 bp to 5.085%.  Dec T-notes were under pressure Friday after Fed Chair Warsh's lack of guidance at the annual IMF meeting in Bangkok weighed on T-notes.  Also, Friday’s +3% surge in WTI crude oil to a 1-month high raised inflation expectations and weighed on T-notes.  Friday’s stock plunge sparked safe-haven buying of government debt and limited T-note losses.  

European government bond yields were mixed on Friday.  The 10-year German bund yield rose +1.3 bp to 3.426%. The 10-year UK gilt yield fell -0.2 bp to 5.373%.

ECB Governing Council member and Bundesbank President Joachim Nagel said. "The ECB has raised interest rates twice, and if the situation remains as it is, we don't rule out the possibility that we may have to take further action."

Markets are discounting a 10% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.

US Stock Movers

Chipmakers and AI-infrastructure stocks continued their week-long slide on Friday, weighing on the broader market.  Seagate Technology Holdings Plc (STX) closed down more than -7%, and Western Digital (WDC), SanDisk (SNDK), and ARM Holdings Plc (ARM) closed down more than -6%.  Also, Advanced Micro Devices (AMD), Micron Technology (MU), Intel (INTC), and Marvell Technology (MRVL) closed down more than -5%, and Lam Research (LRCX), KLA Corp (KLAC), Applied Materials (AMAT), and Broadcom (AVGO) closed down more than -4%.  In addition, 

CoreWeave (CRWV) closed down more than -11% to weigh on cloud infrastructure stocks as debt concerns linger after swaps priced in more than a 50% chance the company will default on its debt within five years.  Also, Nebius Group NV (NBIS) closed down more than -12% to lead losers in the Nasdaq 100, and Applied Digital (APLD) closed down more than -11%. In addition, Lumentum Holdings (LITE) closed down more than -5%, and Oracle (ORCL) and Arista Networks (ANET) closed down more than -4%.

The Magnificent Seven stocks, excluding Apple, fell on Friday and weighed on the overall market.  Meta Platforms (META) closed down more than -3%, and Alphabet (GOOGL) closed down more than -2% to lead losers in the Dow Jones Industrials.  Also, Tesla (TSLA) closed down more than -2%, and Amazon.com (AMZN), Microsoft (MSFT), and Nvidia (NVDA) closed down more than -1%.  Apple (AAPL) bucked the trend and closed up +0.43%. 

Cybersecurity stocks retreated on Friday.  Okta (OKTA) closed down more than -10%, and SentinelOne (S), Fortinet (FTNT), Crowdstrike Holdings (CRWD), and Palo Alto Networks (PANW) closed down more than -7%.  Also, Cloudflare (NET) closed down more than -6%, Zscaler (ZS) closed down more than -5%, and Gen Digital (GEN) closed down more than -2%.

Energy producers and service providers rallied on Friday after WTI crude oil rose more than +3% to a 1-month high. APA Corp (APA) closed up more than +4%, and Diamondback Energy (FANG) closed up more than +4% to lead gainers in the Nasdaq 100.  Also, ConocoPhillips (COP) and  Devon Energy (DVN) closed up more than +3%, and Chevron (CVX) closed up more than +2% to lead gainers in the Dow Jones industrials. In addition, Baker Hughes (BKR), ExxonMobil Holdings (XOM), Occidental Petroleum (OXY), and SLB Ltd (SLB) closed up more than +2%, and Halliburton (HAL) and Phillips 66 (PSX) closed up more than +1%.

Defense contractors rose on Friday as the companies are set to benefit from increased defense spending. Northrop Grumman (NOC) closed up more than +4%, and  Lockheed Martin (LMT), RTX Corp (RTX), and L3Harris Technologies (LHX) closed up more than +3%.  Also, General Dynamics (GD) closed up more than +2%, and Huntington Ingalls Industries (HII) closed up more than +1%.

Defensive food producers moved higher on Friday amid the slump in the broader market.  Kraft Heinz Co (KHC), McCormick & Co (MKC), J M Smucker (SJM),  Hershey Co (HSY), Hormel Foods (HRL), and Mondelez International (MDLZ) closed up more than +1%.

Omeros (OMER) closed down more than -14% after the European Medicines Agency issued a negative opinion on the company’s application for its narsoplimab therapy.

Earnings Reports (10/19/2026)

AGNC Investment Corp (AGNC), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Fifth Third Bancorp (FITB), FNB Corp/PA (FNB), RLI Corp (RLI), Steel Dynamics Inc (STLD), W R Berkley Corp (WRB), Western Alliance Bancorp (WAL), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).

Alright, it's Friday, let me get right to it because there's lots to cover today.

First, check out the worst-performing US large-cap stocks this week (full list here):

 

As you can see, shares of Ciena, Coreweave, Hewlett Packard, Dell and Cerebras Systems were all dinged hard this week, down 22% or more.

I was watching the action in CoreWeave (CRWV) shares on Thursday and Friday and it was just insane:

After touching a low of $59.51 on Thursday morning, the stock bounced big to close at $69.69.

Then on Friday, the bears came back and drove shares all the way back down to $59.90 before it closed at $61.39. 

And all this on massive volume over the last three days. 

The well-known hedge fund Magnetar is the top holder along with Blackrock and Nvidia.

Fears that the company won't be able to service its debt are way overblown in my opinion, but in this market, you shoot first, ask questions later.

Moreover, to me, this week felt like manufactured fear, nothing fundamental has changed.

But in a jittery market, that doesn't matter, traders just sell indiscriminately, and that creates opportunities.

October is always a funny month. Mutual funds close their year at the end of the month; you see a lot of funny action depending on how the year went going into October. 

Having said this, there's no denying RISK OFF is dominating markets and you see this in the riskiest sectors of the market, like biotech where the ETF is down 6% this week:

And some biotech shares, like Viking Therapeutics (VKTX), are faring worst, going from a 52-week high of $43 to a 52-week low of $25 in just two weeks: 

Talk about brutal biotech moves. You need intestinal fortitude to ride out this volatility. 

But remember what I told you. To me, all this seems like manufactured fear; the big hedge funds are buying while the little retail fish are panicking and selling.

That's my two cents on these schizoid markets.

Enjoy your weekend!

Below,Dan Greenhaus, Solus Alternative Asset Management, Tom Lee, Fundstrat Global Advisors, and Ed Clissold, Ned Davis Research, join 'Closing Bell' with reaction to the day's market action.

Also, the CNBC Investment Committee debates whether the AI trade is on shaky ground. They share their portfolio strategies.

third, Scott Wapner sat down with Brad Gerstner, founder and CEO of Altimeter Capital, in San Francisco to discuss AI, the market and more.

Fourth, Bloomberg's Ed Ludlow said that equity market investors are looking at CoreWeave's ballooning debt and the cost of maintaining that debt as it reassesses its credit risk. CoreWeave, a 'neocloud' company that only runs AI data centers, is supplied solely by chip giant Nvidia and runs AI processing for OpenAI and Microsoft. Both CoreWeave's CEO and Nvidia's Jensen Huang have downplayed concerns around CoreWeave's financial structure, bolstering the company's stock.

Lastly, On this episode of The Weekly Wrap, Steve Eisman examines the growing risks and opportunities surrounding AI, from rising debt at AI data center companies to concerns about the future of the AI boom. He also breaks down the latest bank earnings and the impact of agentic AI on financial institutions.

Lauren Bailey of Markets Group reports Canada’s airport concessions put pension funds at a crossroads: Buy old or fund new?:

Prime Minister Mark Carney’s proposed airport concessions could open some of Canada’s largest airports to pension investment, raising questions about whether acquiring established infrastructure assets is the most effective way to deploy institutional capital domestically.

The proposal could give Canadian pension funds access to mature infrastructure assets with established cash flows, while allowing governments to recycle capital into new projects, said Sebastien Betermier, associate professor of finance at McGill University’s Desautels Faculty of Management and executive director of the International Centre for Pension Management.

Canadian pension funds have accumulated substantial experience investing in airports in international markets, including the U.K., Brazil and Eastern Europe. Yet Canada’s major airports, operated by nonprofit airport authorities under federal leases, have largely remained outside their investable opportunity set.

“For a long time those assets were not made available to the funds,” said Betermier. “They were not for sale.”

As pension funds face increasing pressure to deploy more capital domestically, particularly in sectors where they already possess investment expertise, the federal government is proposing long-term operating concessions at Toronto Pearson International, Montreal-Trudeau International, Vancouver International and Calgary International airports. Ottawa would retain ownership of the underlying land and assets, while private investors would compete for operating rights, with the terms of the concessions and regulatory oversight still to be determined.

The government has also identified opportunities to direct additional investment toward smaller regional airports and other infrastructure as part of its broader approach.

For pension funds, the concessions would offer exposure to large, established assets with predictable revenue streams and relatively limited development risk, said Betermier. The government, meanwhile, could use proceeds from the transactions to finance new infrastructure projects that pension funds may be less comfortable developing themselves.

Drawing on their international experience, pension funds could bring financial discipline and operational expertise to airport management, potentially improving efficiency, commercial operations and capital allocation, he noted.

He pointed to the Caisse de dépôt et placement du Québec’s Réseau express métropolitain (REM) project, a 67-kilometer (41-mile) light-rail network with 26 stations planned across the Greater Montreal area, as an example of institutional expertise in large infrastructure projects.

Betermier also pushed back against the assumption that private investment would necessarily translate into higher airport fees or diminished service quality.

“It’s a bit of a misconception to think that because it is going to be privatized, suddenly cost is going to go up and quality is going to go down.”

Rather, institutional investment could support terminal expansion, additional transportation connections and new routes, he said.

Whether those benefits translate into attractive investments would depend heavily on transaction structure, regulatory certainty and the allocation of risk between government and investors, said Betermier.

Potential arrangements range from regulated private ownership to long-term concessions and public-private partnerships, he said, noting each offers different degrees of operational control, government oversight and exposure to commercial risk.

A transparent bidding process, clearly defined decision rights and stable contractual arrangements would be essential to attracting pension capital, particularly for concessions extending 20 to 30 years, he added. Political administrations can change several times over such an investment horizon, creating uncertainty about whether contractual rights will be maintained.

“The last thing you want is to start investing left and right and then being told by the next administration, sorry, we’re changing those rights,” Betermier said.

Such uncertainty could materially affect expected returns and valuations, even where airport operations generate relatively predictable cash flows.

Betermier also emphasized the importance of dispute-resolution mechanisms and pricing transactions according to the risks investors assume. Governments would need to establish which responsibilities they intend to retain and which they would delegate, allowing pension funds to assess the resulting cash-flow profile and determine an appropriate price.

A regulatory framework could also limit pricing increases while preserving incentives for operational improvements, he said. The Competition Bureau has noted that airport fees at Canada’s major airports are not regulated, underscoring the importance of how any new oversight framework would be designed.

Beyond transaction structure, the concessions raise a broader question about whether pension funds should prioritize acquiring established infrastructure or financing new projects that expand Canada’s productive capacity.

Jon Shell, chair of nonprofit Social Capital Partners, doesn’t believe monetizing existing airport operations is necessary if the government’s primary objective is to raise capital for infrastructure investment.

Shell estimated that Canada’s four major airports generated approximately C$472 million in annual ground lease payments to the federal government in 2025, with that revenue stream growing by roughly 6% annually over the past decade. Based on government borrowing costs, Shell calculates that the revenue stream could support between C$9 billion and C$16 billion in financing without transferring long-term operating rights to investors.

“If the objective is to raise money, you don’t need to sell the concession at the airport to get that,” he said.

Shell questioned whether creating a new institutional investment opportunity should be a policy objective in itself, particularly when pension funds could finance new infrastructure.

“We don’t build anything by providing an existing investible asset to pension funds,” he said.

He pointed to Australia’s experience with airport privatization and Ontario’s Highway 407 lease as cautionary examples of transactions that can be difficult and expensive for governments to reverse.

Instead, Shell argued, pension funds could make a greater contribution to domestic economic development by financing new infrastructure, including pipelines, ports and port expansions, rather than acquiring operating rights to existing assets.

The broader problem for Canada’s pension sector, Shell said, is the mismatch between the size of institutional investment mandates and the financing needs of smaller domestic projects. He estimates that large Canadian funds have become increasingly reluctant to consider commitments below C$200 million or C$300 million, potentially leaving smaller businesses and infrastructure projects underserved.

“The pension funds also haven’t innovated on how they invest in 20 years,” he said.

He challenged funds to develop structures capable of deploying smaller commitments rather than waiting for governments to create investment opportunities that fit their existing models.

Shell pointed to the Caisse’s Quebec-focused investment mandate as an example of how institutional capital can support regional economic development alongside financial objectives. The Caisse held C$100.1 billion in Quebec assets at the end of 2025, surpassing its C$100 billion target a year ahead of schedule, according to its 2025 annual report. The pension investment manager made C$6.3 billion in new investments and commitments in the province during the year.

Betermier also sees a role for an intermediary investment platform, potentially backed by several major pension funds, to source, underwrite and manage smaller domestic investments. Australia’s IFM Investors offers a potential model for collaboration, he said.

Such a platform could invest in projects and businesses below the scale typically targeted by Canada’s largest institutions, potentially allowing larger pension funds to acquire those assets once they mature.

The debate highlights two potential roles for Canadian pension funds: acquiring established infrastructure assets that provide long-term returns and financing new projects that expand domestic investment opportunities. How Ottawa structures the concessions, and how pension funds respond to the broader demand for domestic capital, will help determine the balance between those approaches.

I recently covered why Canada's pension funds want stakes in our airports here.

This is an excellent, in-depth article by Lauren Bailey that raises a lot of good issues.

First, I agree with Sebastien Betermier, drawing from their international experience, pension funds could bring financial discipline and operational expertise to airport management, potentially improving efficiency, commercial operations and capital allocation.

He is also right that privatization doesn't necessarily lead to higher costs, but it can improve operations, expand terminals and improve the experience for travellers.  

Moreover, for all this to work properly, pension funds require regulatory certainty over successive governments so they can properly plan their investments over the long run.

Jim Leech, OTPP's former CEO, once told me about how they got burned by one of the provinces on an infrastructure investment as the rules were changed. That pretty much killed future infrastructure investments in Canada.

So, you better believe that pension fund lawyers will be pouring over agreements to make sure there are regulatory clauses that ensure certainty no matter which government is in power.

Now, as far as Jon Shell, chair of nonprofit Social Capital Partners, he also raises some excellent points but I'm not in full agreement with him on everything.

Yes, pension funds can invest in more "greenfield infrastructure projects," but they are much riskier and therefore require more government assurances to incentivize them to invest.

People often point out to the success of the REM here in Montreal as proof that a greenfield project can work.

But almost all the key employees that ensured the REM's success have left CDPQ Infra, and that project had major hiccups along the way (as do all greenfield projects).

In short, it takes a special kind of expertise to ensure the success of greenfield infra projects and I can tell you that our pension funds lack it (people like my friend who managed the Site C project in British Columbia from the get-go and then was recruited to CDPQ Infra to get the REM off and running have actual project management experience and he's been recruited to Europe to manage a toll road there for a German company).

The other reason why pension funds prefer operational, brownfield infrastructure projects is they're less risky, cash flows exist and can be projected with certainty over many years.

In the article above, Jon Shell estimated that Canada’s four major airports generated approximately C$472 million in annual ground lease payments to the federal government in 2025. 

That's a big chunk of change, long-term, inflation-adjusted cash flows that match nicely with the long duration of the liabilities of our large pension plans. 

That's why they want to bid on the concessions of our airports.

Where I agree with Jon Shell is the Canadian model hasn't changed in 20 years, and too many smaller opportunities are falling by the wayside.

I get it, it's too cumbersome and costly to devote resources to smaller opportunities. It's much better to focus on large-scale investments, but it doesn't mean they cannot take a different approach to invest in them either through a third-party fund or directly if they all band together to do so and figure out a structure that works and where investment managers are accountable to all entities.

Again, from the article above:

Betermier also sees a role for an intermediary investment platform, potentially backed by several major pension funds, to source, underwrite and manage smaller domestic investments. Australia’s IFM Investors offers a potential model for collaboration, he said.

Such a platform could invest in projects and businesses below the scale typically targeted by Canada’s largest institutions, potentially allowing larger pension funds to acquire those assets once they mature. 

Alright, let me end it there. I hope we hear more about how our airports will be privatized very soon.

Below, a new report from the University of Calgary is warning that the federal government’s plan to privatize four of Canada’s largest airports could cost air traveller’s even more. The report, released last Thursday, says rules around fees charged by private investors must be made law before bids open.

Vancouver International Airport could be the first candidate of privatization, with indigenous groups at the table for a possible stake.

Global News' Heather Yourex-West reports on how flyers could be footing the bill every time they book a ticket — possibly paying higher prices and receiving a weaker range and quality of services.

Also, during the October 8, 2026 Senate Question Period, Senator Yonah Martin confronted Government Leader Pierre Moreau over reports that Vancouver, Toronto Pearson, Montreal Trudeau, and Calgary could be leased out through long-term private concessions. With travelers already facing record costs, critics warn this move could trigger higher passenger fees and less accountability—all without proper parliamentary oversight.

Lastly, Prime Minister Mark Carney is proposing transforming Canada's biggest and busiest airports from user-pay, not-for-profit models to money-making businesses. Andrew Chang breaks down how the country's airports rely so heavily on passengers to fund operations and explains the potential risks and benefits of Carney's proposal. 

Like I stated above, I do not agree with these anti-privatization arguments. We need to improve our airports, and they will be better managed by private investors over the long run.