S Korean pension fund eyes Chevron's 23% stake in Colonial Pipeline

South Korea's National Pension Service (NPS), the world's fourth-largest public pension fund, is planning to buy a 23-per cent stake in the US fuel pipeline operator Colonial Pipeline Co from oil major Chevron Corp.

South Korean media yesterday reported that NPS is seeking to buy a 23-44 per cent stake in Colonial for about Won1,000 billion ($847 million), which the fund confirmed today, saying that it was in discussions but did not reveal any further details.

The move by NPS, South Korea's biggest investor comes just a few days after it offered to buy a 51-per cent stake in French shopping mall O'Parinor from Hammerson plc for about $300 million as it seeks to broaden its international investment portfolio.

NPS had in the recent past gone on a shopping spree and had acquired HSBC's Canary Wharf headquarters, HSBC Tower,  at 8 Canada Square in the Canary Wharf financial district of the UK in November 2009 for $1.29 billion. (See: HSBC sells UK headquarters to South Korean fund for $1.29 billion) 

It also acquired a 12 per cent stake in February this year in Britain's Gatwick airport reportedly at around £100 million (See: South Korea's pension fund to acquire 12-per cent stake in Gatwick airport)  and acquired Sony Center in Berlin for 850 billion won in June 2010.

The national pension fund has around 300 trillion won ($270 billion), and is recognised among one of the four largest public pension funds in the world. It had earlier said that it will increase its overseas investments to at least 20 per cent by 2015, from the current 11 per cent.