Australian infrastructure investor Macquarie (MQG.AX) has pulled out of bidding for a stake in Kuwait’s oil pipeline network, valued at up to $7 billion, sources told Reuters.
The withdrawal marks one of the first major investor exits linked to heightened regional tensions following the ongoing Iran war.
The firm informed Kuwait Petroleum Corporation (KPC) on Friday that it would not proceed, citing the conflict and an uncertain outlook, a source familiar with the matter said.
The pipeline network relies on the Strait of Hormuz, through which roughly a fifth of global crude normally flows, now effectively blocked by Iranian actions.
Despite the disruption, KPC and deal advisers continue to press ahead with the sale. Non-binding offers are being sought by April 7, with investors including BlackRock and KKR reportedly expressing interest, although their current stance is unclear.
Valuation concerns and proximity to Iranian military assets have tempered enthusiasm.
Other Gulf deals are moving forward cautiously. Saudi Arabia’s King Abdullah Financial District is seeking to sell district cooling assets worth over $500 million, while SISCO Holding aims to divest water assets valued at roughly $266 million.
Sources say deadlines are being adjusted as investors navigate airstrikes and broader economic uncertainty.
Experts note that caution dominates current transactions, with some investors reviewing material adverse change clauses that allow exit if conditions worsen.
KPMG’s Anshul Gupta said capital remains available but pricing is likely to reflect market volatility.
CedarBridge Capital Partners remains active on selected deals, confident in the persistence of GCC macroeconomic trends, despite ongoing geopolitical tensions.