Skip to main content

2013 set to be record year for transport infrastructure deals

Deal values for global transactions of transport infrastructure assets including airports, ports and road operations have risen steeply since the beginning of the year with 2013 poised to be a record year for transport infrastructure deals, according to an analysis by global advisory firm KPMG. The first half of 2013 saw global deals of infrastructure assets worth US$16.6 billion, by the end of the third quarter this figure had risen to US$23.5 billion, which already exceeds total annual deal values fo
November 15, 2013 Read time: 2 mins
Deal values for global transactions of transport infrastructure assets including airports, ports and road operations have risen steeply since the beginning of the year with 2013 poised to be a record year for transport infrastructure deals, according to an analysis by global advisory firm 1981 KPMG.
 
The first half of 2013 saw global deals of infrastructure assets worth US$16.6 billion, by the end of the third quarter this figure had risen to US$23.5 billion, which already exceeds total annual deal values for every year since 2008, the KPMG research shows. 

 The majority of assets being acquired in 2013 have been either in Europe or Asia. This year alone the UK has seen major deals such as the acquisition of Stansted Airport by Manchester Airport Group for (US$2.4 billion and the sale of a nine per cent stake in Heathrow airport by Spain’s 4419 Ferrovial to Universities Superannuation Scheme, one of the UK’s largest pension funds, for US$636 million.
 
Steffen Wagner, KPMG’s European Head of Transport M&A comments: “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”.
 
With transaction multiples high, public budgets low and growth prospects steady, M&A in transport infrastructure is expected to remain high on the sector’s agenda.

Related Content

  • December 21, 2015
    ITS market size ‘to reach US$38.68 billion by 2020’
    The global ITS market is expected to reach US$38.68 billion by 2020, according to a new study by Grand View Research. Increasing demand for alleviating traffic congestion and growing need for enhancing existing transportation networks is expected to drive demand over the forecast period. Growing urban population and increased fund allotment by various governments across the globe is driving need for advanced transportation network. This is estimated to be fulfilled by proper use of wireless communication
  • August 11, 2021
    Consortium to study UK eHighway feasibility 
    Partners including Siemens hope overhead electricity lines will serve major roads by 2030s
  • October 21, 2021
    Bridgepoint acquires majority stake in PTV
    Porsche Automobil Holding retains a 40% stake in the company 
  • November 18, 2013
    Europe’s public transport ITS market expected to exceed US$1.9 billion by 2017
    According to new research from the analyst firm Berg Insight, the market value for public transport intelligent transport systems (ITS) in Europe was US$1.3 billion in 2012. Growing at a compound annual growth rate of nine per cent, the market is expected to reach US$1.9 billion by 2017. Berg Insight suggests that the European market for ITS for public transport is in a growth phase which will continue throughout the forecasted period. The fluctuating economic climate has in most countries had little eff