Copyright : Rancz Andrei

The Canada Pension Plan Investment Board is taking part in a consortium set to enter a partnership agreement with Thomson Reuters Corp.

The consortium, led by the Blackstone Group and including GIC Private Ltd., will hold 55 per cent of the equity of a new corporation that will hold Thomson Reuters’ financial and risk business. Thomson Reuters will retain the remaining 45 per cent under a deal that values the business at almost $25 billion.

“This investment in [finance and risk] will broaden our portfolio in the growing financial technology space. We are very pleased to support the evolution of a global market leader,” said Ryan Selwood, managing director and head of direct private equity at the CPPIB, in a press release.

Read: Ontario Teachers’ invests in energy storage company

Thomson Reuters’ financial and risk business provides data analytics and other information and enables financial transactions. As well, it helps its customers understand and manage both compliance and risk.

“We are excited to partner with Thomson Reuters — one of the most trusted companies in financial technology,” said Martin Brand, a senior managing director at Blackstone. “The [finance and risk] division has tremendous assets, including a world-leading data business, essential risk and compliance solutions, OTC trading venues, wealth management software and a strong desktop business.” 

Read: OMERS expanding presence in blockchain, cryptocurrency sector

The Reuters news agency won’t be a part of the acquisition; however, the financial and risk business will have exclusive rights through a 30-year contract to distribute Reuters news through its products.

On the infrastructure front, the CPPIB, along with Oxford Properties Group, finalized its acquisition of the southern part of the St. John’s terminal in New York City for US$700 million. Located in Manhattan, the acre site currently houses a rail terminus built in 1934. The CPPIB will own a 47.5 per cent interest, with Oxford Properties holding 52.5 per cent.

Details of plans to develop of the site will be forthcoming in the later half of 2018, a press release noted.

Read: CPPIB invests in two Chinese real estate developments

Copyright © 2021 Transcontinental Media G.P. Originally published on benefitscanada.com

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