Ontario Teachers' Pension Plan (OTPP) and Victorian Funds Management Corp (VFMC) look set to take a 48.25% stake of the UK's fifth largest airport for £420m ($US828m).
The Canadian and Australian outfits have come together under the name Airports Group Investments Limited (AGIL).
AGIL has entered into a conditional agreement to directly and indirectly buy shares in Birmingham Airport from Macquarie Airports Group Ltd and Aer Rianta.
Teachers' Private Capital senior vice president, Jim Leech, said: "We look forward to working with VFMC, the district co-shareholders and other stakeholders to support the continued development and growth of the airport over the coming decades."
VFMC CIO, Leo de Bever, said: “As long-term public sector asset managers, we believe that Teachers' and ourselves are uniquely well suited to a long-term partnership with the district shareholders."
The other major shareholder, West Midlands Districts Council, holds pre-emption rights to the shares being sold. If the right is not exercised within 90 days, AGIL would be able close the transaction.
If the deal goes through, the council would keep its 49% interest in the airport and through an employee share trust, airport staff would continue to hold the remaining 2.75%.
The C$106bn (US$96.7bn) OTPP holds 60.1% of AGIL, while VFMC with A$40bn (US$32.8bn) assets under management owns 39.9%.
Earlier this week, OTPP announced plans to acquire major shareholder interest in two Chilean water provision and wastewater companies.
Last week the fund opened its first office outside Canada in London to focus on direct European investment
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