Macquarie’s $11.6 billion bid for Qube has drawn attention to the declining number of listed infrastructure companies on the Australian Securities Exchange (ASX). According to Morningstar market strategist Lochlan Halloway, this trend reduces opportunities for individual investors to access long-duration, essential-service assets. Halloway noted that when high-quality businesses remain in private hands, individual investors miss the chance to match these assets to their long-term needs.
Macquarie Asset Management’s offer for Qube, which owns intermodal terminals, port assets and a 50 per cent stake in Patrick Terminals, is significantly above both the undisturbed share price and Morningstar’s fair value estimate. This makes the deal likely to proceed. The bid continues a trend of privatisation, which accelerated after the global financial crisis. Key examples include the removal of Spark Infrastructure, AusNet, and Sydney Airport between late 2021 and 2022.
Morningstar data indicates that the number of listed infrastructure firms has decreased from approximately 70 at its peak to just a few today, with over half of the remaining companies valued at under $1 billion. The likely departure of Qube would further diminish the investible universe. Currently, only four traditional infrastructure stocks remain under Morningstar coverage: Transurban, APA Group, Auckland International Airport, and Atlas Arteria.
Halloway identifies Auckland Airport as the most undervalued, trading nearly 20 per cent below its fair value. He suggests that investors may need to broaden their search to include companies with infrastructure-like characteristics such as monopoly positions, inflation-linked revenues, and high barriers to entry. Qube is an Australian logistics and infrastructure company. Macquarie is a global financial services group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities.
