The smart money’s on data . . .
Canada’s Brookfield Asset Management and New Zealand’s Infratil have closed a deal to acquire UK company Vodafone’s business in New Zealand for C$3.8B. The investment gives each of the two companies a 49 per cent stake in the business. “Data has been one of the fastest growing commodities in the world,” Brookfield’s Asia Pacific CEO commented on the unique multinational deal, adding further growth will be driven by greater smartphone penetration, increasing video consumption, the adoption of 5G networks, and new and evolving uses of emergent technologies.
Canada a big investor in Asia Pacific infrastructure . . .
Headquartered in Toronto, Brookfield’s investment is part of a larger trend of Canadian companies investing in critical infrastructure in the Asia Pacific. Canadian institutional investors like the Canada Pension Plan Investment Board (CPPIB) and Caisse de Depot et placement du Quebec are particularly active in this space. Last August, CPPIB invested C$1.8B for a 20.5 per cent stake in Australia’s WestConnex toll road project, which connects Western and South Western Sydney to the city and its airport.
In stark contrast with Huawei’s NZ experience . . .
Brookfield’s investment in New Zealand’s critical communication network has yet to attract much political or regulatory scrutiny. And some analysts believethat the deal is expected to receive a regulatory green light. This lies in stark contrast to New Zealand’s recent ban on Chinese telecom giant Huawei from the country’s 5G network over national security concerns.
- New Zealand Herald: Vodafone NZ sold to Infratil, Brookfield for $3.4b
- The Globe and Mail: New Zealand becomes third Five Eyes member to ban Huawei from 5G network
- APF Canada: Investment Monitor Report 2019