Macquarie Group (ASX:MQG) has reportedly abandoned its bid for a stake in Kuwait's oil pipeline network, valued at up to US$7 billion, as escalating regional conflict destabilises Gulf infrastructure investments.
The ASX-listed investment giant reportedly informed the Kuwait Petroleum Corporation of its withdrawal on March 13, citing the ongoing war with Iran and a deteriorating regional outlook.
The divestment process has been further complicated by the pipeline's proximity to Iranian military assets and the vulnerability of the Strait of Hormuz, a critical chokepoint for a fifth of the world’s oil supply.
While BlackRock and KKR were previously identified as potential suitors, their current status in the bidding process remains unconfirmed as investors weigh the risks of future oil volume uncertainty.